Gas shortage results in production cut

PetroChina, China's largest energy producer, will suspend natural gas supplies to Cangzhou Dahua Group Co Ltd, a fertilizer manufacturer in Hebei province, because of a winter shortage, the fertilizer company said.

China faces a natural gas shortage every winter as residential heating starts, which leads to increased demand for natural gas.

In order to ensure residential use of natural gas, suppliers are asked by the government to limit the supply for industrial use.

PetroChina decided to suspend natural gas supplies to Cangzhou Dahua on Nov 12, according to the announcement.

Cangzhou Dahua said its urea and nitric acid production will be suspended because natural gas is the major raw material and fuel for its production.

This will affect the company's whole-year performance, it said.

In 2012, the company's urea output was 512,000 metric tons. By Nov 11 this year, the company produced 465,000 tons of urea.

"To reduce the loss, the company will conduct equipment maintenance during the fuel suspension and actively work on regaining the supply," the company said.