05 November 2008 04:19 [Source: ICIS news]
SINGAPORE (ICIS news)--Xinjiang Tuha Oilfield and Karamay Petrochemical - two producers in China's western province of Xinjiang, had shut their methanol units in since H2 October due to cuts in natural gas feedstock and would probably resume normal operations after April next year, company sources said on Wednesday.
Karamay Petrochemical had shut its 200,000tonne/year methanol unit on 17 October while Xinjiang Tuha Oilfield’s 240,000tonne/year methanol unit was taken offline on 24 October due to a restriction of gas feedstock on government mandate.
The Chinese government had ordered natural gas to be prioritised for heating purposes as winter approaches. Hence use of natural gas for industrial purposes, such as to produce methanol, would only be available after spring, possibly in April 2009, the source added.
Chinese methanol was at $220-255/tonne CFR (cost and freight) China last Friday, down $15-35/tonne according to global chemical market intelligence service ICIS pricing.
Other methanol producers in China include CNOOC Kingboard Chemical Limited and Yanzhou Coal Industry Yulin Energy Ltd.
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