BASF Warns That The World's Largest Chemical Base May Be Closed! Shell Emergency Shutdown of Ethylene / Propylene Cracker!

According to chemweek, BASF said in an emailed statement on the 29th that there is no substitute for natural gas as a raw material or energy source (in Germany), and the shortage of natural gas will cause it to not have enough energy for chemical production and lack of key raw materials for manufacturing products. 

BASF said that reducing the supply of natural gas to its Ludwigshafen site in Germany to less than half of current demand would lead to a complete cessation of operations at the world's largest integrated chemical production site.

Shell (London, UK) has shut down its ethylene and propylene cracker in Molkirk, the Netherlands, due to technical problems. As of press time, the company has not confirmed this. It's unclear how long the plant shutdown will last and whether force majeure will be declared.

According to third-party media reports, the shutdown is not the right time for Shell given the tight market for intermediates. This may affect the upcoming C2, C3 and styrene price negotiations. Market watchers expect C2 and C3 prices to jump to €300/t in April due to market tensions and uncertainty from the Ukraine war.