As Germany’s natural gas supply runs dry, major corporations that use it such as chemical giant BASF are having to pay more for what they can get while also drastically cutting production.
BASF reportedly had to pay an additional 800 million euros (about $809.5 million) in the second quarter compared to a year earlier while slashing output of ammonia, which requires large amounts of gas in order to produce.
“We are reducing production at facilities that require large volumes of natural gas, such as ammonia plants,” announced BASF chief executive Martin Brudermuller in a conference call following an earnings report.
BASF is looking to tap external suppliers to fill the deficit, but there will still be potential supply disruptions. Ammonia is a fertilizer, after all, which means farmers will have more trouble getting it, which means more problems rippling throughout the supply chain.
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“Reuters details how ammonia plays a critical role in manufacturing nitrogen-based fertilizers, plastic-making, and diesel exhaust fluid,” one report explained. “A byproduct of ammonia production is high-purity carbon dioxide (CO2) which is heavily used in the food industry.”
They refuse to admit it, but the world’s largest economies are now in a recession
The move comes after Russia announced that natural gas flows through the Nord Stream 1 (NS1) pipeline will be reduced by half, dropping from 40 percent to just 20 percent.
Other European Union (EU) countries have said they will reduce NatGas demand by 15 percent over the next eight months, but Germany faces a much more difficult situation as it has no liquefied natural gas (LNG) port terminals to replace the Russian pipeline on which it has long relied.
Sacrifices like less heat in the winter will have to be made, we are told, as well as the possibility of a lights out situation in Germany come wintertime.
Benchmark natural gas prices in Europe at the Dutch TTF hub have consequently hit their highest levels since March, shooting up 35 percent in just one week.
“Chemical companies are the biggest industrial natural-gas users in Germany, and ammonia is the single most gas-intensive product within that industry,” Reuters reported.
Arne Rautenberg, a fund manager at Union Investment, says ammonia is more than likely the first thing that will go amid the natural gas supply squeeze because of the time of year in which it is typically needed.
“In the northern hemisphere, nitrogen fertilizer is applied primarily during the spring,” Rautenberg said, indicating that the CO2 supply for the food industry is likely to experience disruptions.
“It can also be produced in the United States and shipped to Europe.”
Because of soaring energy prices caused by inflation, natural gas use in Germany and elsewhere was already being cut long before Russia invaded Ukraine, which prompted sanctions that have impacted the flow of natural gas through NS1.
VCI, a chemical industry lobby, says German ammonia production started being curbed almost a year ago. The economic impact of those cuts is now being felt in a major way and will lead Germany and the rest of the world into a recession.
“Less fertilizer means less food and more bugs,” wrote someone at Zero Hedge about how the engineered takedown of the global economy and food supply will lead the world into a paradigm of eating crickets and other bugs, just as the “elite” have long been planning.
“What does a world without fertilizer look like? Hint: It looks like global famine,” wrote another.
“The Germans may as well voluntarily report to the Rhine meadow camps of post-WW2,” added someone else. “Their voluntary subjugation is almost complete.”
More related news about natural gas can be found at FuelSupply.news.
Sources for this article include:
Will America-First News Outlets Make it to 2023?
Things are looking grim for conservative and populist news sites.
There’s something happening behind the scenes at several popular conservative news outlets. 2021 was bad, but 2022 is proving to be disastrous for news sites that aren’t “playing ball” with the corporate media narrative. It’s being said that advertisers are cracking down, forcing some of the biggest ad networks like Google and Yahoo to pull their inventory from conservative outlets. This has had two major effects. First, it has cooled most conservative outlets from discussing “taboo” topics like Pandemic Panic Theater, voter fraud, or The Great Reset. Second, it has isolated those ad networks that aren’t playing ball.
Certain topics are anathema for most ad networks. Speaking out against vaccines or vaccine mandates is a certain path to being demonetized. Highlighting voter fraud in the 2020 and future elections is another instant advertising death penalty. Throw in truthful stories about climate change hysteria, Critical Race Theory, and the border crisis and it’s easy to understand how difficult it is for America-First news outlets to spread the facts, share conservative opinions, and still pay the bills.
Without naming names, I have been told of several news outlets who have been forced to either consolidate with larger organizations or who have backed down on covering certain topics out of fear of being “canceled” by the ad networks. I get it. This is a business for many of us and it’s not very profitable. Those of us who do this for a living are often barely squeaking by, so loss of additional revenue can often mean being forced to make cuts. That means not being able to cover the topics properly. Its a Catch-22: Tell the truth and lose the money necessary to keep telling the truth, or avoid the truth and make enough money to survive. Those who have chosen survival simply aren’t able to spread the truth properly.
We will never avoid the truth. The Lord will provide if it is His will. Our job is simply to share the facts, spread the Gospel, and educate as many Americans as possible while exposing the forces of evil.
To those who have the means, we ask that you please donate. We have options available now, but there is no telling when those options will cancel us. We have our GivingFuel page. There have been many who have been canceled by PayPal, but for now it’s still an option. Your generosity is what keeps these sites running and allows us to get the truth to the masses. We’ve had great success in growing but we know we can do more with your assistance.
Thank you, and God Bless!
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JD Rucker – EIC