{"id":59702,"date":"2021-10-06T07:37:00","date_gmt":"2021-10-06T12:37:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59702"},"modified":"2021-10-06T07:37:00","modified_gmt":"2021-10-06T12:37:00","slug":"dominos-fall-as-germanys-largest-ammonia-producer-slashes-output-amid-energy-crisis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59702","title":{"rendered":"Dominos Fall As Germany\u2019s Largest Ammonia Producer Slashes Output Amid Energy Crisis\u00a0"},"content":{"rendered":"<header class=\"ArticleFull_header__11o5_\">\n<h3 class=\"ArticleFull_title__2cUI6\"><a href=\"https:\/\/www.zerohedge.com\/markets\/dominos-fall-germanys-largest-ammonia-producer-slashes-output-amid-energy-crisis\">Dominos Fall As Germany\u2019s Largest Ammonia Producer Slashes Output Amid Energy Crisis\u00a0<\/a><\/h3>\n<\/header>\n<div class=\"NodeContent_mainContent__38L44\">\n<div class=\"NodeContent_body__2clki NodeBody_container__1M6aJ\">\n<p>A natural gas shortage across Europe has created supply-chain shocks, as seen in the food industry, where problems continue to worsen. European natgas prices are at insane levels, triggering a domino effect of output reduction or closures of fertilizer plants on the continent.<\/p>\n<p>Last month, two of the U.K.&#8217;s largest fertilizer factories producing 45% of domestic demand\u00a0<a href=\"https:\/\/www.zerohedge.com\/commodities\/major-uk-fertilizer-plants-shuttered-due-skyrocketing-natural-gas-prices\">closed<\/a>, and one shortly reopened with government aid. By late month, Austrian fertilizer producer Borealis AG slashed\u00a0<a href=\"https:\/\/www.zerohedge.com\/commodities\/uks-fertilizer-crisis-spreads-eu-after-another-firm-slashes-output\">ammonia output<\/a>\u00a0after the cost natgas compressed margins in an industry facing tight supplies.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/fert.png?itok=EmklxeaX\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/fert.png?itok=EmklxeaX\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/fert.png?itok=EmklxeaX\" alt=\"\" width=\"500\" height=\"228\" data-entity-type=\"file\" data-entity-uuid=\"c192526e-5b68-4ef6-8af3-5a75e693fe79\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<div class=\"Advert_desktop__1J5vD Advert_tablet__3QEBr Advert_mobile__1rlLc Advert_placement__1I4yb Advert_align__N0_fw\">\n<aside id=\"in-content-video\" class=\"Advert_verticallySpaced__wnPy3\" data-google-query-id=\"CJC-kt7VtfMCFb8NiAkd_tYO1g\">\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_video_0__container__\"><\/div>\n<\/aside>\n<\/div>\n<p>As the dominos fall, SKW Piesteritz, Germany&#8217;s largest ammonia producer, announced a 20% reduction in ammonia production due to the record-high natgas prices on Tuesday.<\/p>\n<blockquote><p><em>&#8220;<\/em><strong><em>The level that has now been reached no longer enables economically sensible production<\/em><\/strong><em>, so that we are forced to take this step,&#8221; the company told Bloomberg in an emailed statement.\u00a0<\/em><\/p>\n<p><em>&#8220;<\/em><strong><em>Without government action, there is a risk of production being halted shortly<\/em><\/strong><em>,&#8221; the statement continued.\u00a0<\/em><\/p><\/blockquote>\n<p>We&#8217;ve seen this story play out when U.K.&#8217;s C.F. Industries shuttered two plants last month because of soaring natgas prices and caused an immediate disruption to the food industry. Then the government swooped in with\u00a0<a href=\"https:\/\/www.zerohedge.com\/commodities\/uk-strikes-emergency-deal-c02-producer-restart-operations-amid-shortage\">emergency orders to restart<\/a>\u00a0at least one of the plants.<\/p>\n<p>As a refresher, natgas is used to synthesize ammonia for nitrogen fertilizers for the farm industry, and a byproduct is CO2, used heavily in the food industry, for food packaging to stunning animals at slaughterhouses to bubbly soda pop.<\/p>\n<p>Bloomberg&#8217;s Mike Dennis created an infographic of European natgas prices and the events surrounded by rising prices.<\/p>\n<figure class=\"caption caption-img inline-images image-style-inline-images\" role=\"group\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/Snag_5d8fba36.png?itok=6LvhaSor\" alt=\"\" width=\"500\" height=\"294\" data-entity-type=\"file\" data-entity-uuid=\"96726626-f5a6-4fd6-8758-91637d81d301\" data-responsive-image-style=\"inline_images\" \/><figcaption><em>Source: Bloomberg<\/em><\/figcaption><\/figure>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dominos Fall As Germany\u2019s Largest Ammonia Producer Slashes Output Amid Energy Crisis\u00a0 A natural gas shortage across Europe has created supply-chain shocks, as seen in the food industry, where problems continue to worsen. European natgas prices are at insane levels, triggering a domino effect of output reduction or closures of fertilizer plants on the continent. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[31912,359,554,17653,31091,4318],"class_list":["post-59702","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-ammonia","tag-germany","tag-natural-gas","tag-natural-gas-price","tag-supply-chain-disruptions","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59702"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59702\/revisions"}],"predecessor-version":[{"id":59705,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59702\/revisions\/59705"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}