In winter, the power supply becomes increasingly tight, and chemical companies that rely heavily on electricity are under constant pressure. This year, the situation has worsened due to a 70 million kilowatt power deficit combined with an unusually cold climate marked by ice and snow, leading to a sharp rise in energy demand. As a result, the power shortage has become even more severe for the chemical industry. On January 23, it was reported that 13 provinces and cities, including Hubei, Hunan, Jiangxi, Sichuan, Chongqing, Shaanxi, and Guizhou, are experiencing significant power challenges, putting chemical companies in these regions under intense stress.
At Kaifeng Jinkai Chemical Co., Ltd., production has been unstable since January 20th, with operations running at only 80% of full capacity. The company expects this situation to continue until the Spring Festival. Meanwhile, Xinlianxin Chemical Fertilizer Co., Ltd. in Xinxiang is facing an even graver problem. According to reports, when the voltage fluctuates between 100 and 200 volts, the plant can produce 9 tons of urea, but as the power instability increases, so does the consumption of raw materials, leading to higher energy waste.
Shaanxi Xinghua Stock Co., Ltd. had to cut production starting on January 17th, reducing fertilizer output by 30% to 40%. The production of carbon dioxide and other equipment was forced to operate at lower capacity, causing daily ammonia and ammonium nitrate output to drop from 610 tons and 1,000 tons to 450 tons and 700 tons respectively.
Some factory managers have pointed out that the current situation is more dangerous than just power cuts. With continuous snowfall during the winter, if production is reduced or halted, systems could freeze, leading to potential explosions or other serious accidents. Companies are now operating under extreme safety concerns, with production stability hanging by a thread.
While some provinces have imposed strict power restrictions, Jiangxi’s petrochemical companies have prepared in advance, and their chemical production remains relatively stable. Additionally, some firms with their own power plants have been less affected by the winter power shortages. For example, Yuhuan Yu Hang, the country's largest producer of calcium carbide and PVC, operates two power plants in Jiaozuo and Xiangyang, allowing them to maintain normal operations without worrying about power disruptions.
According to a representative from the Shandong Chlor-Alkali Association, Shandong currently has a relatively stable power supply, though the chlor-alkali industry still faces some limitations. However, officials from Shandong Union Chemicals Co., Ltd. mentioned that daily power cuts from 15:00 to 12:00 cause a 15% reduction in power supply, forcing the company to lower its production load by 20%, which will affect the spring planting season. This issue is not isolated, as the entire Weifang region is experiencing similar challenges.
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