UPDATE 1-Sinofert expects power rationing to affect fertiliser output
(Updates with background, comment)
Aug 23 (Reuters) - China's state-owned Sinofert Holdings said that power rationing in the south of China will have some impact on its nitrogen and phosphate fertiliser production but that the situation is "under control".
The impact of this year's power rationing however is milder than last year's, said a company executive during an earnings call on Tuesday.
"This year's abnormally high temperatures have led to a relatively large increase in residential electricity consumption ... which led to power rationing in some areas," said Gao Jian, Chief Financial Officer at China's top fertiliser producer.
"Compared with last year's situation where thermal power was limited due to coal supply issues, the impact on power consumption this year is relatively mild. In particular, it will have some impact on our nitrogen and phosphate fertiliser production. Currently, the impact is under control."
China's southwestern Sichuan province imposed power restrictions on industrial users from Aug. 15 to Aug. 25 as it grapples with dwindling hydropower output and surging household electricity demand amid its worst heatwave in 60 years.
It also later began limiting electricity supply to homes, offices and malls.
Sichuan relies on dams to generate more than 80% of its electricity, but soaring temperatures and little rain this summer reduced hydropower generation while boosting power demand for air conditioning.
(Reporting by Emily Chow and Beijing newsroom Editing by David Goodman, Kirsten Donovan)
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