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World’s Largest Chemical Company to Cut Down on Ammonia Production, a Key Ingredient in Fertilizers...The price of ammonia is closely linked with that of natural gas
The National File ^ | August 3, 2022 | by CULLEN MCCUE

Posted on 08/03/2022 8:53:50 AM PDT by Red Badger

The world’s largest chemical company, Germany’s BAS, recently announced its plans to scale down on ammonia production. The price of ammonia — a key ingredient in many fertilizers used worldwide — is tied closely with that of natural gas.

“We are reducing production at facilities that require large volumes of natural gas, such as ammonia plants,” BASF CEO Martin Brudermueller said in a July 27 media call after the company’s second quarter financial report became available.

The company had previously announced a reduction in its ammonia production last year. In September 2021, BASF cut ammonia production at its headquarters in Ludwigshafen, Germany, as well as at its large chemical complex in Antwerp, Belgium, according to The Epoch Times.

In order to fill the gaps, BASF will purchase ammonia from external suppliers, Brudermueller said. The production of ammonia usually accounts for about 4.5 percent of the natural gas used by German industries.

The CEO went on to say that farmers can expect high fertilizer costs to continue well into 2023. “The main application for ammonia is for fertilizers, and that’s for producing food. For this year, that’s not going to be a problem because all the farmers have already bought their fertilizers and have already used it on their field. The harvest is already taking place,” he said. “Next availability will be worse because the capacity is not going to be there and the next is price. Fertilizer prices are skyrocketing.”

“And then farmers will be forced to save money and will only use the minimum of fertilizers on their field. Might also mean that harvest is going to be minor. If there are weather problems, [it would result in] a shortage situation for important crops.”

Ammonia is a key ingredient in fertilizer production. It also plays a key role in the manufacturing of plastics and diesel exhaust fluid.

Germany’s largest ammonia producer, SKW Piesteritz, and No. 4, Ineos, have separately announced that production cuts cannot be ruled out as the price of natural gas remains high across the continent.

Germany has no liquefied natural gas port terminals to replace Russian imports, which it relied heavily on. As a result, German industries are under pressure to reduce gas consumption if supplies are disrupted further.

Russian gas giant Gazprom began reducing its gas supply to Europe via the Nord Stream 1 pipeline, the major delivery route to Europe for Russian gas, on July 27. Supplies were cut to a fifth, or 20 percent, of the pipeline’s total capacity, The Epoch Times reported.

On July 26, European Union responded by announcing a “voluntary reduction” of natural gas demand by 15 percent in order to prepare for the winter.


TOPICS: Agriculture; Business/Economy; Food; Gardening
KEYWORDS: ammonia; fertilizer; germany; lng; naturalgas
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1 posted on 08/03/2022 8:53:50 AM PDT by Red Badger
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To: Red Badger
Germany has no liquefied natural gas port terminals

That's genius-level planning right there ...

2 posted on 08/03/2022 9:07:09 AM PDT by Campion (Everything is a grace, everything is the direct effect of our Father's love - Little Flower)
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To: Campion

No wonder they lost two World Wars.


3 posted on 08/03/2022 9:08:56 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: Red Badger

Amazing how we’ve gone through ce tries of excellent progress, becoming one of the greatest nations on earth, to one where now all of a sudden we are facing severe shortages and for problems, and whatnot. All of,a sudden everything is becoming an “emergency” or “pandemic” and everyone “must make sacrifices” blah blah blah.


4 posted on 08/03/2022 9:09:57 AM PDT by Bob434 (question)
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To: Red Badger

Once again, the “experts”, drunk on their momentum to reduce emissions via a reduction in the use of fossil fuels, overlooked the notion that nat gas is also pretty much the bedrock foundation of the entire world chemical industry. Apparently, nobody thought that fertilizer and thus food would be impacted. Nor plastics and the precursors for many medicines. It’s actually pretty incredible when you think about it, nat gas and its chemical products are absolutely fundamental to many, many components of civilization. Even if it smells funny.


5 posted on 08/03/2022 9:18:04 AM PDT by Attention Surplus Disorder (Apoplectic is where we want them)
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Isn’t one of the issues with the Dutch government attempting to shut down a lot of farmers that the cows are creating too much ammonia? Send that cow pee to Germany.


6 posted on 08/03/2022 9:22:12 AM PDT by Kipp
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To: Campion

Any reason why we the U.S. couldn’t become leader in ammonia production & fertilizer king of the world? And then we could move on from there. All this would be if we had a leader of course.


7 posted on 08/03/2022 9:23:49 AM PDT by oldtech
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To: Red Badger

Starving the Planet. Gotta get rid of 7 billion folks somehow and the cheapest way possible. (See WEF and Uncle Klaus Schwab).


8 posted on 08/03/2022 9:35:57 AM PDT by silent majority rising ( )
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To: Kipp

Here in the Ozarks the ground is so poor the only way to make it fertile is to raise tens of thousands of chickens, then used the manure on the fields.

If you have ever been in a large chicken house in the summer you will be choked and tear up by the ammonia produced by the chickens.


9 posted on 08/03/2022 9:43:27 AM PDT by Ruy Dias de Bivar (“Both oligarch and tyrant mistrust the people, and therefore deprive them of their arms.” – Aristotl)
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To: Red Badger

I guess it’s back to bat guano.


10 posted on 08/03/2022 9:51:13 AM PDT by Bloodandgravy (Thru a glass crusty...)
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To: Attention Surplus Disorder

Remember Klaus Schwab, the World Economic Forum, and “You will own nothing and you will be happy” as well as “Eat the bugs because meat is bad for the environment” ?


11 posted on 08/03/2022 9:52:45 AM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: Campion

Yes, they have rented a couple floating terminals from Turkey but they offer only a small capacity cf to what they need. Too bad they didn’t start building their own five years ago when Trump explained the future to them.


12 posted on 08/03/2022 9:58:06 AM PDT by hinckley buzzard ( Resist the narrative.)
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To: Bloodandgravy

And outhouse cleanings...................


13 posted on 08/03/2022 9:58:54 AM PDT by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: oldtech

The US produces a little more than 8 million tons of ammonia, not enough to meet our domestic needs. Currently under construction in Texas is what will be the largest ammonia plant in the world when it opens in 2023. That will help. I suspect we haven’t been a leader because it has been a cheap commodity, up till now, cheaper to import than to produce domestically.


14 posted on 08/03/2022 10:04:09 AM PDT by hinckley buzzard ( Resist the narrative.)
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To: Red Badger

The Haber-Bosch process for fixing nitrogen, the basis for agriculture, food, and life!!!!

Don’t disrupt it!!!!


15 posted on 08/03/2022 10:14:02 AM PDT by Honorary Serb (Kosovo is Serbia! Free Srpska! Abolish ICTY!)
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To: Red Badger

I wonder if this was a ‘side’ deal made with Russia...


16 posted on 08/03/2022 10:16:13 AM PDT by GOPJ (Every large city run by democrats is a hellhhole.. Don't let democrats 'hellhole' the country. VOTE.)
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To: Red Badger

We are reducing production at facilities that require large volumes of natural gas, such as ammonia plants.

Climate **control** dots being connected.


17 posted on 08/03/2022 3:09:50 PM PDT by Vaduz ( )
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To: Red Badger

Mass starvation is planned, by the WEF/Davos crowd. Too many of us plebes taking up their view.


18 posted on 08/03/2022 5:38:53 PM PDT by Basket_of_Deplorables (Putin is behaving rationally.The war is on Biden and Obama. )
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To: Honorary Serb

Excellent, and natural gas is used as the source of hydrogen. So without hydrogen there is no ammonia (NH3).


19 posted on 08/03/2022 7:19:16 PM PDT by 2001convSVT (Asking questions is your right.)
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To: Red Badger

Green = famine


20 posted on 08/04/2022 9:39:35 AM PDT by The Great RJ
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