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Volatile natural gas prices to switch to coal chemical fertilizer industry - natural gas, fertilize by wqecv thbtn





Article Author Biography
Volatile natural gas prices to switch to coal chemical fertilizer industry - natural gas, fertilize by
Article Posted: 04/18/2011
Article Views: 75
Articles Written: 1385
Word Count: 734
Article Votes: 0
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Volatile natural gas prices to switch to coal chemical fertilizer industry - natural gas, fertilize


 
Business,Business News,Business Opportunities
Gas price reform seems to have been ready to go ahead. Last Thursday held a State Council executive meeting, deepen reform of energy prices, strengthen the management of re-use can be mentioned, natural gas and other resources to deepen reform of prices was highlighted.

"Gas price reform is a matter of time, we have been paying attention." Hubei Yihua, a Times reporter told the Chinese economy, nitrogen fertilizer production of raw materials and fuel needed to come from energy, the energy costs about 70% of total production costs, the majority of natural gas as raw material for fertilizer companies to increase natural gas prices will increase production costs.

As inexpensive nitrogen fertilizer business to use more natural gas as raw materials to domestic gas supply was once more than half of the total, then with the increase in domestic gas supply, accounting for gradually narrowing.

"The late 70s of last century, the majority of nitrogen fertilizer plant with natural gas as raw material, a lot of nitrogen fertilizer plant were built near the origin of natural gas." The people of the State in order to support agricultural development, use of natural gas for fertilizer production enterprises established lower price.

This standard has been lower prices continue, although slight price increases during the period, but compared to industrial use of natural gas, fertilizer companies are still enjoying the benefits.

2005 natural gas prices started the end of the reform program, separate the fertilizer production preferential gas prices significantly lower than profile industrial and domestic gas. Once the price increases, at the price of most low end of the fertilizer industry to face the direct impact of price adjustment.

Nitrogen Fertilizer Association, the Secretary-General Moderr do not want to talk about gas prices and more will impact on the fertilizer business topics, she said that as the current price of natural gas reform program has not yet introduced, is not the time to talk about gas price changes.

"Gas prices will definitely affect the operation of chemical enterprises, and not a general effect, if the increase is too high to significantly increase their operating pressure, if the increase appropriate, companies can afford." She told this reporter , about a year now to digest nitrogen fertilizer industry 11 billion cubic meters of natural gas, almost 8 billion cubic meters of which countries can enjoy the preferential price.

Impact News on natural gas price adjustment has never stopped. A lot of information this reporter found that: Although rare unity of adjustment, but whether civil or industrial use of natural gas, have experienced many times in recent years, a small fine-tuning.

By the end of April this year, the National Development and Reform Commission issued a notice up in parts of pipeline transportation of natural gas prices increased 0.08 yuan per cubic meter, followed by some provinces, including Hebei, including the pipeline transportation price increases. By the end of March this year, Puguang gas field, "East Gas Transmission" project put into operation, ex-factory price is no longer divided into "city gas, fertilizer, gas, industrial gases," third gear directly to determine the 1.28 yuan / cubic meter base price. Before that, Shanghai has adjusted the end of 2008 civilian gas prices, adjusted from 2.1 yuan per cubic meter to 2.5 yuan, in Beijing at the end of 2006, adjusted from 1.9 yuan per cubic meter to 2. 05 yuan.

Despite repeated after adjustment, but compared with other energy prices, domestic natural gas prices remain low. Data show that China's oil and gas prices current ratio of 1:0.24, the international market as 1:0.6. Comparison of domestic crude oil prices, resulting in equal caloric value of natural gas prices remain low.

To informed sources, the National Development and Reform Commission who will determine the direction of the reform of natural gas prices as "the first commercial, then the market, the ultimate goal of integration with the national crude oil prices."

"Development and Reform Commission plans to 3 to 5 years, the establishment of joint mechanisms for oil and gas prices to 5% per year? 8% of the gas prices continue to rise, price merged.

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