By Ludwig Burger
FRANKFURT – BASF is monitoring the pure fuel market carefully and will minimize manufacturing additional if wanted after Russia suspended deliveries by means of its major fuel pipeline to Germany, the chemical compounds large mentioned on Monday.
Responding to questions from Reuters, the Germany-based firm, one of many largest pure fuel customers within the nation, added it was bracing for prime and risky fuel costs.
European shares fell on Monday and fuel costs surged after Russia indefinitely prolonged a shutdown of Nord Stream 1, one among its major fuel provide routes to Europe.
“BASF is monitoring the state of affairs and can determine, relying on the state of affairs, on any modifications to the manufacturing worth chain as applicable,” it mentioned in a press release.
BASF is already lowering manufacturing of ammonia, which depends closely on pure fuel, and sourcing some it its ammonia wants from outdoors Europe, the place fuel costs are decrease.
Ammonia is principally used for nitrogen fertiliser however can be a significant enter for engineering plastics and diesel exhaust fluid. Ammonia manufacturing yields food-grade carbon dioxide as a byproduct, which is required by the meat and fizzy drinks industries.
BASF warned in July some traces of manufacturing might be topic to output cuts because it flagged decrease ammonia manufacturing. It additionally talked about syngas, a combination of carbon monoxide and hydrogen, and primary petrochemical acetylene as candidates for cutbacks on the time.
Rival ammonia makers Yara and CF Industries mentioned final month they have been slashing ammonia manufacturing in Europe as a result of hovering fuel costs.
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