Corrected: BASF curtails ammonia production at Antwerp and Ludwigshafen

LONDON (ICIS)–BASF has curtailed ammonia production at two of its European sites on the back of escalating gas prices, the German major announced on Monday.

The key chemicals producer has curtailed production of ammonia at Antwerp, Belgium, and its primary site in Ludwigshafen, Germany.

“The economics for operating an ammonia plant in the region has become extremely challenging,” BASF said in a statement.

BASF said it will monitor gas price developments and adjust its ammonia production accordingly.

BASF is just the latest of several major ammonia producers to announce it is curtailing production due to current economic fundamentals in that market.

Last week, Spain’s Fertiberia said it was curtailing ammonia production at its Palos de la Frontera facilities, but added that production at its other sites would stay unchanged.

Ukraine’s OPZ and Austria’s Borealis also said last week they were curtailing ammonia output due to high natural gas prices.

The first major producer to announce output cuts, however, was Norway’s Yara on 17 September.

Front page picture: BASF’s facilities in Ludwigshafen, Germany
Source: BASF 

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Clarification: Re-casts headline, introduction