South China chemical producer halts ammonia output as gas crisis deepens

[thackney]

South China chemical producer halts ammonia output as gas crisis deepens
https://www.reuters.com/article/us-china-pollution-gas-yunnan/south-china-chemical-producer-halts-ammonia-output-as-gas-crisis-deepens-idUSKBN1E611J
DECEMBER 12, 2017

A major Chinese chemical producer based in the southern province of Yunnan said it has halted production of synthetic ammonia and urea due to natural gas shortages as China’s winter heating crisis deepens.

Yunnan Yuntianhua Co stopped a 500,000-tonne per year production plant of ammonia and an 800,000-tonne a year urea production line at its Yunnan Shuifu subsidiary, it said in a filing to the Shanghai Stock Exchange on Tuesday.

“Gas producers have suspended gas supplies to major industrial consumers in southwestern regions. Our Shuifu plant will temporarily halt production of two chemicals as a result,” the company said.

Yuntianhua, which halted production on Monday, will book a 25 million yuan ($3.78 million) loss due to the disruption. The company does not expect to resume before Dec. 31.

The stoppage comes as at least one state natural gas producer has diverted supplies of the fuel to China’s north for residential heating use....

[IsailedawayfromFR]

This is a big deal as I recall China was the largest user of Urea in the world.  Cutting back on Urea means China will lose ability to make the food they require unless they can purchase some more elsewhere.