THE WHAT? BASF is said to be monitoring its fragile gas supply and is ready to cut production further. This follows Russia suspending delivery through its main gas pipeline to Germany, according to a report by Reuters.
THE DETAILS Gas prices have surged as Russia extended a shutdown of Nord Stream 1 – a main gas supply route to Europe.
BASF stated to Reuters that it was ‘bracing for high and volatile gas prices’.
The company is already reducing production of ammonia and sourcing some of its needs from outside of Europe.
THE WHY? Taking to a statement, the chemicals company said, “BASF is monitoring the situation and will decide, depending on the situation, on any changes to the production value chain as appropriate.”