(Yicai Global) Dec. 14 -- Hubei Yihua Chemical Industry Co. [SHE:000422] has suspended production at two major nitrogen fertilizer plants due to a lack of raw materials as Chinese chemical firms try to cope with this winter's natural gas shortage.

The Hubei-based company said its subsidiary, Inner Mongolia Erdos Group Co., shut down facilities that can make 520,000 tons of synthetic ammonia and 1,040,000 tons of urea a year on Dec. 12.

A scarcity of coal pushed Guizhou Yihua Chemical Industry Co. to halt operations that can yield 200,000 tons of synthetic ammonia and 300,000 tons urea annually.

If the two subsidiaries are unable to resume production by the end of the month, they will face net losses of CNY8.67 million (USD1.31 million) and CNY8.9 million respectively, the parent said. Hubei Yihua Chemical Industry is contacting various suppliers to bring the plants back online as early as possible.

Natural gas supply in China is tight due to efforts to reduce pollution. The government is pushing ahead with plans to heat the north with gas rather than coal, resulting in a shortage that is spreading south. The heating season typically begins in early- to mid-November in most northern cities.

German chemical giant BASF SE [ETR:BAS] temporarily stopped producing methylene diphenyl diisocyanate (MDI), a raw material for making polyurethane, in southwest China's Chongqing, due to a short supply of natural gas.

China National Petroleum Corp. and China Petrochemical Corporation Group recently told all of their chemical and fertilizer manufacturing units in Sichuan and Hubei to pause production from Dec. 8 to ensure heating gas supplies up north.

Yunnan Yuntianhua Co. [SHE:600096] said its wholly-owned subsidiary, Yunnan Shuifu Yuntianhua Co., suspended production at plants that make 500,000 tons of synthetic ammonia and 800,000 tons urea per year. The interruption will not end before Dec. 31.