China’s natural gas output increases in May, eases tight supply

15 June 2011 09:38  [Source: ICIS news]

SHANGHAI (ICIS)--China’s natural gas output has increased by 5.7% year on year and by 2.6% month on month in May, easing the tight supply in its industrial sectors, especially in fertilizer production, a source from China Gas Association (CGA) said on Wednesday.

The constant tight supply of natural gas in China worsens during the winter months because of an increase in heating demand.

The country’s natural gas output was 8bn cbm and its total volume achieved was 42.6bn cbm during the first five months of this year, the data from CGA showed.

Some fertilizer companies in southwestern China have restarted their plants because of the increasing natural gas supply, according to fertilizer market sources.

Guizhou Chitianhua’s 750,000 tonne/year urea plant and Yunnan Yuntianhua’s 800,000 tonne/year urea plant are running at “normal” rates.

“[We had to shut down] our urea plant from last October to the first quarter of this year. It is now running well with ample natural gas supply,” a source close to Yunnan Yuntianhua said.

Natural gas is a form of natural energy that is used as feedstock for urea and methanol production.

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By: Dolly Wu
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