Gas shortages are spreading to industrial sectors in southern and western China after authorities in Beijing diverted the fuel to the north to resolve an LNG shortfall caused by a botched effort to cut coal use.
Chemicals producers in Sichuan and Chongqing, in China’s south-west, have been ordered to shut or curtail production until March, heightening the economic impact of the disruption.
The National Energy Administration has taken over gas allocation from state-owned oil companies in an effort to co-ordinate an increasingly complex set of diversions to mitigate the shortfall.
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