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Chemical fertilizer manufacturers are requesting state aid for the purchase of natural gas

24 December 2019
Consumers
energynomics

The Nitrofosfor Organic Chemical Employers Organization asks the Government to include the fertilizer production sector in a state aid scheme aimed at the purchase of natural gas, given that the factories consume about 3 million cubic meters of gas daily, mainly from import.

“We would like the Government to consider solutions for the fertilizer production sector to be included in a state aid scheme for the purchase of natural gas, which can be linked to the definition of the concept of vulnerable consumer. The fertilizer factories are currently consuming about 3 million cubic meters of gas daily, mainly from imports, which makes it the economic sector with the highest gas consumption in our country. If there is a support from the Government, new capacities could be reopened, which would increase consumption to around 8 million cubic meters daily,” states a release sent to Agerpres.

According to the quoted source, the state aid scheme for energy-intensive companies, which qualify companies that have high electricity consumption, only marginally helps the fertilizer industry, given that the purchase of electricity represents less than 10% of the costs of this industry.

“The fertilizer industry is highly gas intensive one, about 75% of the price of the finished product is represented by the cost of raw material – natural gas. Like electricity, the gas also registered significant price increases during 2019, causing competitiveness problems for the chemical industry in general, but we find with surprise that the big companies that consume natural gas in the manufacturing industry do not benefit from the same attention as those that consume electricity, given that, however, the gas is still energy,” stresses the statement.

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