**NDRC: Fertilizer producers shall not be regarded as high-energy-consuming enterprises; measures for orderly power consumption shall not be implemented against them······

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This post was last edited by Desert Fish on 2021-12-3 at 13:01. Recently, the Office of the National Development and Reform Commission issued a notice requiring that the needs for coal, electricity, and gas used in fertilizer production be properly met. The notice calls on coal enterprises to increase the supply of coal for fertilizer production, to strictly fulfill existing contracts, and to actively conclude new contracts for coal used in fertilizer production ； Except in cases of force majeure, there shall be no implementation of regulated power usage for fertilizer production enterprises; such enterprises shall not be classified as high-energy-consuming enterprises ； Make efforts to increase the supply of natural gas to fertilizer manufacturing enterprises. The notice requires that sufficient coal be provided for fertilizer production: Economic management departments in various regions should promptly assess the supply and demand of coal for fertilizer manufacturers in their areas, as well as the status of signing and fulfilling medium- to long-term coal contracts. They should guide coal companies and fertilizer manufacturers to sign such contracts on the basis of the principle of \"shared benefits and shared risks\" ； Strengthen supervision over the fulfillment of medium- and long-term contracts that have already been signed; promptly organize and coordinate the acquisition of coal supplies to fill any shortages before the New Year, and urge fertilizer manufacturers to sign adequate medium- and long-term contracts for their coal consumption next year. The economic management departments of coal-producing provinces should urge local coal enterprises to fulfill in a timely and full manner the medium- to long-term contracts already signed with fertilizer manufacturers, and assist other provinces and regions in coordinating the identification of coal sources for supplementary contracts related to fertilizer production. Coal enterprises should increase the supply of coal for fertilizer production, strictly fulfill existing contracts, and actively conclude new contracts for coal used in fertilizer production. Coal enterprises that operate, hold controlling stakes in, or have equity interests in fertilizer production enterprises must also enter into medium- to long-term contracts, strengthen the coordinated allocation of internal coal resources, and ensure that their affiliated fertilizer production enterprises have sufficient coal supplies. Strengthen the guarantee of railway transport capacity for coal used in fertilizer production; give priority to the transportation plans for such coal under signed medium- and long-term contracts, on a par with those for thermal coal. The notice also calls for ensuring a proper supply of electricity for fertilizer production: economic management departments and power grid companies in various regions should improve power dispatching, optimize service methods, and support fertilizer manufacturers in concluding medium- to long-term electricity contracts, so as to guarantee their electricity needs. It is necessary to adhere to differentiated treatment and categorized measures, and scientifically formulate plans for orderly power usage. Except in cases of force majeure, no measures related to orderly power usage shall be imposed on fertilizer production enterprises. When implementing further reforms to make the electricity pricing for coal-fired power generation more market-driven and organizing electricity market transactions, various regions may take into account the special nature of fertilizer production as an industry that supports agriculture; fertilizer manufacturers should not be classified as high-energy-consuming enterprises. The specific arrangements in this regard shall be determined by the relevant local authorities based on actual conditions. The notice emphasizes the need to actively ensure a supply of gas for fertilizer production: economic management departments at all levels and natural gas supply companies should strengthen resource allocation, optimize resource management, and assist fertilizer manufacturers in concluding gas supply contracts. During the heating season, natural gas supply companies must strictly fulfill the gas supply contracts signed with fertilizer manufacturers. While ensuring an adequate supply of gas for domestic use, they should strive to increase the amount of gas supplied to these manufacturers; during peak periods, they should minimize any reduction in gas supply to fertilizer plants, shorten the duration of such reductions, and exert greater efforts to ensure a stable supply of gas to key fertilizer manufacturers. Additionally, recently, the National Development and Reform Commission, in conjunction with the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Transport, and China State Railway Group, jointly issued the “Notice on Establishing a Special Working Group for Coordinating and Ensuring Fertilizer Production to Stabilize Fertilizer Supply in the Coming Period.” This notice calls on local authorities to establish such working groups. Guided by the principle of “tailored measures for each enterprise,” these groups are expected to proactively assist key fertilizer producers and help resolve any difficulties or problems that may hinder an increase in their production levels. The list of key fertilizer manufacturers covered by this notice includes those with approximately 70% of the production capacity for urea and ammonium phosphate, as well as around 90% of the production capacity for potash fertilizers; this will help ensure an adequate supply of fertilizers for spring plowing next year.