Slowing delivery of Russian natural gas in Europe is starting to reach into industrial supply chains. The dwindling gas supplies are proving a threat to chemical giant BASF’s vast manufacturing hub in Germany, the Wall Street Journal reports, raising alarms at the world’s largest integrated chemical complex and beyond. Because BASF and other chemicals companies sit at the beginning of most industrial supply chains, a disruption in operations would reverberate beyond the sector. Experts say it would threaten Europe’s economy at a time of high inflation and slowing growth.
Chemicals companies are more vulnerable than other industrial players because natural gas is critical for most of their processes. Some 60% of the gas BASF consumes in Europe is used for power and steam generation. The other 40% goes to raw material for its products.
