China Fertilizer Industry Report

In 2005 and 2006, China's natural gas output increased rapidly with a year-on-year growth rate of 20.6% and 16.9% respectively.

The natural gas reserves of Sichuan Basin is about 7.4 trillion cubic meters, and the annual output is about 27.8% to China's total. Due to the improvement of natural gas exploiting and recovering technology and the operation and management level of the enterprises in recent years, the production capacity improved greatly. The newly-found gas fields amounted to 30, the newly-built pipelines reached more than 3000 km, and the produced natural gas totaled more than 800 cubic meters, accounting for 25%, 33% and 40% respectively to the total since 1949.

The agriculture in China is biological intensive, and the agricultural output increase depends on fertilizer much. The current consumption of fertilizer in China was 43 million tons every year, accounting for about 1/3 of the world. In addition, the fertilizer (including pesticide) accounts for more than 20% in the total agricultural cost in China.

In 2005, China's total output of fertilizer was 48.88 million tons, up 6.8% from a year earlier, among which the nitrogenous fertilizer was 35.759 million tons (including Urea fertilizer 19.949 million tons), rising 6.6% from a year earlier.