Chemical giant may close plant due to gas shortage – WSJ

Must read

Morgan Stanley slashes its U.S. housing market outlook—where it sees the home price correction going in 2023

On a national basis, home prices fell 1.3% between June and August. That marked the first decline measured by the lagged Case-Shiller National Home...

When will Netflix shutter its DVD mail service? It’s a matter of when, not if.

Netflix’s trailblazing DVD-by-mail rental service has been relegated as a relic in the age of video streaming, but there is still a steady —...

Europeans furious about Joe Biden’s Inflation Reduction Act are threatening a trade spat: ‘Nobody wants to get into a tit-for-tat’

The European Union and the United States are treading precariously close to a major trans-Atlantic trade dispute at a time when the two Western giants...

New Jersey could kill up to 2.4 million trees in one of the state’s environmental treasures—but officials say they’re just scrawny shrubs

Up to 2.4 million trees would be cut down as part of a project to prevent major wildfires in a federally protected New Jersey...

Germany’s BASF may shut down its biggest facility due to reduced Russian energy supply, the newspaper reports

German chemicals major BASF may be forced to halt production at the world’s biggest chemicals plant in Ludwigshafen, the Wall Street Journal reported on Monday, citing shortages of cheap and abundant Russian gas.

According to the report, BASF has used Russian natural gas for years to generate power and as feedstock for products that make it into toothpaste, medicine, and cars. However, dwindling Russian gas supplies are proving a threat to the company’s vast manufacturing hub, it says.

“Cutting down production at this site will be a huge task,” said BASF senior economist Peter Westerheide, as quoted by the WSJ. “We’ve never seen situations like this before. It’s hard to imagine.”

With an area of approximately ten square kilometers, the Ludwigshafen complex spanning some 200 plants, accounts for about 4% of the total gas demand in Germany. Approximately 60% of the fuel used at the plant is meant to generate electricity, while the remaining 40% is feedstock for the production of chemical products, including ammonia and acetylene.

BASF estimates that if the chemical complex continues to receive more than 50% of the maximum volume of gas, operations could be continued. Otherwise, the work of the complex will have to be stopped.

Earlier this month, Russian gas flows to Germany through the undersea Nord Stream pipeline were cut by as much as 60% due to technical issues arising from Western sanctions against Moscow. In response to the crisis, the German government has launched the second ‘alarm’ phase of its three-level gas emergency plan. Berlin has warned it’s facing a severe shortage of the fuel amid diminishing flows from Russia.

For more stories on economy & finance visit RT’s business section

More articles

Latest article

Morgan Stanley slashes its U.S. housing market outlook—where it sees the home price correction going in 2023

On a national basis, home prices fell 1.3% between June and August. That marked the first decline measured by the lagged Case-Shiller National Home...

When will Netflix shutter its DVD mail service? It’s a matter of when, not if.

Netflix’s trailblazing DVD-by-mail rental service has been relegated as a relic in the age of video streaming, but there is still a steady —...

Europeans furious about Joe Biden’s Inflation Reduction Act are threatening a trade spat: ‘Nobody wants to get into a tit-for-tat’

The European Union and the United States are treading precariously close to a major trans-Atlantic trade dispute at a time when the two Western giants...

New Jersey could kill up to 2.4 million trees in one of the state’s environmental treasures—but officials say they’re just scrawny shrubs

Up to 2.4 million trees would be cut down as part of a project to prevent major wildfires in a federally protected New Jersey...

Finland to return sanctioned Russian property

Several hundred Russian...