German Chemicals giant BASF SE said it is monitoring the natural gas market closely and could cut production further if needed, after Russian state-owned Gazprom PJSC said late on Sept. 2 it would not reopen the key Nord Stream 1 pipeline to Europe after maintenance (GM Sept. 2, p. 35).
According to a Reuters report on Sept. 5, the company, one of Germany’s largest gas users, is bracing itself for high and volatile gas prices.
BASF already has reduced production at its ammonia plants and at other facilities that need “large volumes” of natural gas to operate (GM July 29, p. 1). The company did not provide any specifics on the planned reductions and plant utilization rates, but has said it is sourcing some of its ammonia needs from outside Europe.
CEO Martin Brudermüller said at a July 27 media call presenting second-quarter earnings that BASF will buy some ammonia from other suppliers to meet orders.
In Europe, BASF has ammonia production capacity of 910,000 mt/y at Ludwigshafen, Germany, and 610,000 mt/y at Antwerp, Belgium, according to the Green Markets database.