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GOVERNMENT WITHOUT PERMANENT SOLUTION FOR PETROKEMIJA

ZAGREB, Jan 16 (Hina) - Will the government ever settle the issue of the Petrokemija mineral fertiliser manufacturer, in which production has been halted for a month due to gas shortage, Ivan Kolar of the ruling coalition's Peasant Party (HSS) asked of Economy Minister Goranko Fizulic in parliament on Wednesday. Kolar maintains the Kutina-based company's troubles could be overcome with the import or borrowing of power sources, but Fizulic said "the transport capacities in Croatia are so encumbered that the additional import of electricity could cause the breakdown of the entire power supply system." The minister reminded that Petrokemija and the domestic oil company INA had signed a contract on an annual purchase of 300 million square metres of gas. Petrokemija requires 500 million square metres, which INA can supply only in favourable weather conditions, he said. Households a
ZAGREB, Jan 16 (Hina) - Will the government ever settle the issue of the Petrokemija mineral fertiliser manufacturer, in which production has been halted for a month due to gas shortage, Ivan Kolar of the ruling coalition's Peasant Party (HSS) asked of Economy Minister Goranko Fizulic in parliament on Wednesday. Kolar maintains the Kutina-based company's troubles could be overcome with the import or borrowing of power sources, but Fizulic said "the transport capacities in Croatia are so encumbered that the additional import of electricity could cause the breakdown of the entire power supply system." The minister reminded that Petrokemija and the domestic oil company INA had signed a contract on an annual purchase of 300 million square metres of gas. Petrokemija requires 500 million square metres, which INA can supply only in favourable weather conditions, he said. Households account for 70 percent of gas consumption, which puts the government into a dilemma - to ration gas and electricity or continue with the blockade of Petrokemija. Although there is no quick fix, Fizulic said mineral fertiliser might be imported for the spring sowing in order to make up for the standstill in Petrokemija's production. The company's supervisory board forwarded an appeal to the government, the directors of INA and the HEP power company, and the Croatian public on Tuesday, demanding the immediate implementation of a conclusion reached with Fizulic stipulating that INA and HEP should consider switching some users to other fuels so that Petrokemija might stop incurring further debts. Under the conclusion, some gas would be directed towards starting the manufacturing of fertiliser. The appeal says the import of fuel cannot restart production due to its poorer quality and higher price, as well as from a logistic point of view, namely the timely supply of the customer. The appeal also advocates a permanent gas supply, stating this fuel is essential to the manufacturing of fertiliser. (hina) ha sb

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