China’s Ningxia Petrochemical shuts fertilizer plants
23 December 2009 10:21 [Source: ICIS news]
SHANGHAI (ICIS news)--Ningxia Petrochemical, a subsidiary of PetroChina, has shut down its two synthesis ammonia units and two urea plants in northwestern China due to shortage of feedstock natural gas, a company source said on Wednesday.
The plants were taken off line since end November, market sources said.
Ningxia Petrochemical could produce 1.3m tonnes/year of urea, PetroChina said on its website. The feedstock shortage was caused by China's policy to prioritise the use of natural gas for heating purposes. Heavy snowfall and unusually cold weather this year caused China's consumption of natural gas to spike, leading to a restricted supply for industrial use in some provinces.Ningxia Petrochemical was losing over yuan (CNY) 4.5m ($658,858) per day and had to cut its natural gas usage by 2m cubic metres per day after the shutdown of these plants, PetroChina’s parent company, China National Petroleum Corp (CNPC), said in its online newsletter.
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