Adds detail
BEIJING, Sept 24 (Reuters) – China’s state planner on Friday called on state companies to provide sufficient power supply to fertiliser producers amid soaring prices, as many parts of the country implement curbs on power consumption by industrial users.
The National Development and Reform Commission (NDRC) has issued a series of orders in recent months to guarantee adequate supply of fertiliser after prices surged to record levels, raising concerns about food production.
Earlier this week, the NDRC said it would release some potash, a type of fertiliser, from its state reserves and increase capacity utilisation rates at fertiliser makers.
On Friday, it urged state oil majors Petrochina, Sinopec and CNOOC to strictly fulfil gas supply contracts to fertiliser makers, while power companies in provinces like Inner Mongolia, Henan and Shandong should prioritise electricity supply to fertiliser production.
It also said controls on coal consumption could be “appropriately” relaxed to allow fertiliser companies to operate at full capacity.
China has ordered curbs on power consumption in many regions, as the country struggles to meet its climate pledges.
Some firms in provinces like Yunnan, Guizhou and Hubei would be allowed to increase output of phosphate ore, used to produce phosphate fertilisers, to meet the needs of other regions, the NDRC said.
(Reporting by Dominique Patton; Editing by Shri Navaratnam and Richard Pullin)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com