Germany’s BASF, the world’s largest chemical company, is considering further cuts to ammonia production due to soaring natural gas prices, two sources familiar with the matter said, with potential ramifications from farming to fizzy drinks, Reuters reported.
Germany’s biggest ammonia maker SKW Piesteritz and their competitor Ineos also said they could not rule out production cuts as the country grapples with disruption to Russian gas supplies.
Unlike many European countries, Germany has no liquefied natural gas (LNG) port terminals to replace Russian pipeline gas. That means companies are under political and commercial pressure to reduce gas-intensive activities if gas deliveries are cut further.
Under normal circumstances, ammonia production accounts for about 4.5 percent of the natural gas used by German industries.
Germany's BASF, the world's largest chemical company, is considering further cuts to ammonia production due to soaring natural gas prices, two sources familiar with the matter said, with potential ramifications from farming to fizzy drinks https://t.co/jOKvQI245O pic.twitter.com/oKn9FfFAbX— Reuters (@Reuters) July 27, 2022
“Russia is blackmailing us. Russia is using energy as a weapon,” EU Commission President Ursula von der Leyen said, describing a full cut-off of Russian gas flows as “a likely scenario” for which “Europe needs to be ready”.
With Nord Stream 1 flowing at just 20% of capacity from July 27, Germany will NOT have enough natural gas to make it throughout the whole winter **unless big demand reductions are implemented**. Berlin will need to activate stage 3 of its gas emergency program #ONGT #EnergyCrisis— Javier Blas (@JavierBlas) July 25, 2022