A recent report highlights the steady operations at Hubei Jinkong Gas Co., Ltd., located in the Baling Industrial Park of the Dangyang Economic Development Zone. The facility's gasifier unit is operating at a utilization rate consistently above 95%, with production lines running at full capacity.
In the first half of the year, the company faced challenges from fluctuating international energy markets, which caused domestic liquid ammonia and LNG prices to initially rise and then fall. Despite this, Hubei Jinkong Gas achieved an industrial output value of 945 million yuan, maintaining its core business stability.
Company head Luo Junjie stated that the stability was achieved by focusing on both production and market strategies. As a key regional energy and chemical enterprise, Hubei Jinkong Gas utilizes advanced international technology for converting smokeless fine coal into synthetic ammonia and LNG, achieving a carbon conversion rate of over 99%. This technology results in coal consumption per unit product significantly below the industry average, providing a strong cost advantage.
The company's production system operates with long cycles and no need for maintenance shutdowns. The gasifier unit's capacity utilization rate remains above 95%, with the liquid ammonia and LNG co-production lines running at full capacity to ensure stable supply.
To navigate the volatile market, the company's supply and marketing department closely monitors dynamics. For liquid ammonia, they track provincial supply flows and downstream production schedules, using stable orders to maintain reasonable inventory and capitalize on price increases. When predicting a downward trend for LNG, they accelerate outbound shipments at the first sign of price softening, adopting a low-inventory, fast-turnaround model to avoid depreciation risks.
The company also leverages its cost advantages to explore markets along the Yangtze River in central and eastern China, seizing opportunities from geopolitical situations to offset market pressures in the second quarter and stabilize average product selling prices.
Looking ahead to the second half of the year, coal raw material costs are expected to increase. Luo Junjie noted that the company will focus on energy-saving and technological transformation projects. Plans include speeding up the connection of a dedicated liquid ammonia pipeline to Hubei Huiyang New Materials Co., Ltd. and exploring the value of by-product hydrogen resources. By continuing to cultivate the Yangtze River import substitution market and diversifying profit channels, Hubei Jinkong Gas is committed to achieving its full-year operational target of 2 billion yuan.