(Hong Kong, 31 December 2007) China BlueChemical Ltd. (“China BlueChem” or the “Company”; stock code: 3983), a leading chemical fertilizer producer in China, announced that the Company’s Fudao Phase II 800,000 tonnes urea production plant, and CNOOC Jiantao 600,000 tonnes methanol plant, have resumed production, returning to normal operations on 29 December 2007 and 30 December 2007 respectively. This follows suspension in natural gas supply that was the result of damaged under-water gas pipe.
At 9:00 a.m. on 6 November 2007, a dredger broke the landing section of the under-water natural gas pipe of Dongfang 1-1 Gas Field, which supplies natural gas to the Company’s Fudao Phase II urea production plant and CNOOC Jiantao methanol plant. The ruptured pipe caused a termination in supply, consequently halting production at the two plants.
After the incident, the Company and the gas supplier, CNOOC Limited, as well as related contractors immediately organized a joint study, formulating solutions for repairing the affected pipe. Significant resources were deployed, including a dedicated workforce. Following over one month’s effort, the pipe was repaired and passed relevant tests ahead of schedule. The gas supply to Fudao phase II urea production plant and CNOOC Jiantao methanol plant was resumed after quality test of the gas in the pipeline.
With a designed annual production capacity of 800,000 tonnes of granular urea, Fudao Phase II urea production plant is the largest single production capacity plant of its kind in the country. Similarly, with a designed annual production capacity of 600,000 tonnes of methanol, the CNOOC Jiantao methanol plant is the largest methanol facility in China. Commencing production in 2003, Dongfang 1-1 Gas Field has a designed annual production capacity of 2.4 billion cubic feet of natural gas. It operates an under-water natural gas transmission pipe that measures 22 inches in diameter and about 105 miles in length. The gas from Dongfang 1-1 gas field also supplies to Yangpu power station and for civil use of Haikou.
Mr. Yang Ye Xin, CEO and President of China BlueChem, said, “This is the first incident that has occurred since our production plants in Hainan province commenced operation. With close cooperation between our Company and gas suppliers, as well as the prompt action taken, the gas supply pipe was repaired and production resumed within a relatively short time. In the future, we will further strengthen our communications with the gas supplier to ensure smooth and continuous operation of the Company’s plants.”
- End -
About China BlueChemical Ltd.
China BlueChem is one of the largest and most efficient nitrogenous fertilizer producers in China in terms of production volume and energy consumption. It is a listed company of China National Offshore Oil Corp. that engages in the production of downstream mineral fertilizers and synthetic chemical products. Currently, China BlueChem’s production facilities are located in Hainan and Inner Mongolia, China, with a total designed annual production capacity of 1,840,000 tonnes of urea and 800,000 tonnes of methanol. Besides, China BlueChem has also secured long-term natural gas supply for its Hainan Plant.
For press enquiries：
China BlueChemical Ltd.
Ms. Lydia Zhong Tel: (852) 22132502 zhongyx@cnooc.com.cn
Strategic Financial Relations (China) Limited
Ms. Arlene Wong Tel: (852) 2864 4899 arlene.wong@sprg.com.hk
Ms. Annie Choi Tel: (852) 2864 4837 annie.choi@sprg.com.hk
