Russia's cut-off of natural gas supply to the EU has become a fact.
and the whole of Europe's natural gas cut-off is no longer a verbal concern. Next, the number one problem that European countries need to solve is the supply of natural gas.
All the world's commodities are derivatives of petrochemicals based on natural gas and crude oil.
As the world's second largest chemical integration base (Germany BASF Group) is located in Ludwigshafen, Germany, covering an area of 10 square kilometers of industrial park, opened 200 production plants, 2021 electricity consumption will reach 5.998 billion KWH, fossil fuel power supply will reach 17.8 billion KWH, steam consumption will reach 19,000 metric tons.
Natural gas is primarily used to generate energy and steam, and to make the most critical chemicals such as ammonia and acetylene.
Crude oil is split into ethylene and propylene in steam crackers, which underpin six of BASF's product lines, and a shutdown of such a large chemical plant would result in the loss of jobs or shortened hours for some 40,000 workers.
The base also produces 14% of the world's vitamin E and 28% of the world's vitamin A. The production of feed enzymes determines the production cost and price of the global market. Alkyl ethanolamine can be used for water treatment and paint industry, as well as gas treatment, fabric softener, metal processing industry and other aspects.
Basf's impact on globalization
BASF Group is located in Ludwigshafen, Germany, Antwerp, Belgium, Freeport, Texas, USA, Geismar, Louisiana, Nanjing, China (a joint venture with Sinopec, with a 50/50 shareholding) and Kuantan, Malaysia (a joint venture with Malaysia). Come to the national oil company joint venture) have established branches and production bases.
Once the raw material production at the German headquarters cannot be produced and supplied normally, then the influence will expand to all chemical bases in the world, and all products produced by derivatives will be in short supply, and then there will be waves of price increases.
In particular, the Chinese market accounts for 45% of the global market share. It is the largest chemical market and dominates the growth of global chemical production. This is why BASF Group has established production bases in China very early. In addition to the integrated bases in Nanjing and Guangdong, BASF also has factories in Shanghai, China, and Jiaxing, Zhejiang, and established a joint venture BASF-Shanshan Battery Materials Company in Changsha.
Almost all the daily necessities in our life are inseparable from chemical products, and its influence is greater than the shortage of chips. This is definitely bad news for consumers, because all commodities will usher in a wave The tide of price hikes will undoubtedly make things worse for an economy already plagued by the epidemic.
Post time: Oct-19-2022