China’s Zhong Yuan Da Hua to shut urea unit on 20 December

13 December 2012 07:19  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Zhong Yuan Da Hua plans to shut its 750,000 tonne/year urea unit in Henan province of central China on 20 December because of shortage of natural gas feedstock, a company source said on Thursday.

“The company will take the unit off line in response to the lack of feedstock natural gas but the restart time has not been decided yet,” the source added.

China typically allocates more natural gas for heating of residential units during cold winter months and reduces supply to industrial units.

The shutdown of urea plant is likely to reduce supply in Henan province amid stable demand and hence put upward pressure on prices, according to the source.

Zhongyuan Dahua is a subsidiary of Henan Coal & Chemical Industry Corporation in Henan province.

By: Rita Wang

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