LONDON (ICIS) – BASF has cut ammonia production at two of its European sites due to escalating gas prices, the German major said on Monday.
The main producer of chemicals has reduced its production of ammonia in Antwerp, Belgium, and at its main site in Ludwigshafen, Germany.
“The economics of operating an ammonia plant in the region have become extremely difficult,” BASF said in a statement.
BASF said it would monitor gas price developments and adjust its ammonia production accordingly.
BASF is just the latest of several major ammonia producers to announce that it is cutting production due to current economic fundamentals in this market.
Last week, Spanish company Fertiberia announced it was cutting ammonia production at its Palos de la Frontera facility, but added that production at its other sites would remain unchanged.
Ukraine’s OPZ and Austria’s Borealis also announced last week that they were cutting ammonia production due to high natural gas prices.
The first major producer to announce production cuts, however, was Norway’s Yara on September 17.
Cover photo: BASF’s facilities in Ludwigshafen, Germany
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