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**NDRC: Fertilizer manufacturers are not considered high-energy-consuming enterprises; therefore, measures such as orderly power usage shall not be applied…… Author/Source: China Chemical Industry News Date: 2021-12-03 Clicks: 9 Recently, the Office of the NDRC 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, organized power consumption restrictions shall not be imposed on fertilizer production enterprises, nor should such enterprises be classified as high-energy-consuming enterprises ； Make efforts to increase the supply of natural gas to fertilizer production 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; urgently organize and coordinate the sourcing of coal to fill any shortages before the New Year by signing additional contracts, 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 companies 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 or hold controlling/interest stakes in fertilizer production companies must also enter into medium- to long-term contracts, and strengthen the coordinated allocation of internal coal resources to ensure the coal supply needed by their affiliated fertilizer production facilities. Strengthen the railway transport capacity for coal used in fertilizer production, and give transportation plans for such coal that are covered by long-term contracts the same priority as that given to coal used for power generation. 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 enhance power dispatching, improve service methods, and support fertilizer production enterprises in signing medium- to long-term electricity contracts, so as to properly meet their electricity needs. It is necessary to adopt a differentiated approach and implement targeted measures, and to formulate scientific plans for orderly electricity use. Except in cases of force majeure, enterprises that produce fertilizers should not be subject to such ordered electricity usage measures. 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 decisions in this regard shall be made by the relevant local authorities based on actual conditions. The notice emphasizes the need to actively ensure a sufficient 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, efforts should be made to minimize any reduction in gas supply to fertilizer plants, as well as to shorten the duration of such reductions. Special attention should be given to ensuring a stable supply of gas to key fertilizer manufacturers. It is also reported that recently, the **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, issued a notice titled \"On Establishing Special Teams for Coordinating and Ensuring Fertilizer Production in Order to Stabilize Fertilizer Supply in the Coming Period.\" This notice calls for local authorities to set up such special teams, which shall, following the principle of \"one strategy per enterprise,\" actively assist key fertilizer producers in addressing the difficulties and issues that hinder an increase in production levels. The list of key fertilizer manufacturers covered by this notice includes those with approximately 70% of the production capacity for urea and phosphate ammonium, 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.