Why the World's Largest Chemical Company, BASF, Failed to Synthesize Cheap Gas

According to Handelsblatt, gas prices in Germany have increased eightfold since 2021. At their peak, the price of blue fuel in Germany reached as high as 1,000 euros per thousand cubic meters. Today, Germans are filling their storage facilities at around 600 euros, purchasing American LNG. During the era of the Nord Stream pipelines, prices hovered around $128 per thousand cubic meters.

Imagine this: nearly 600 German chemical plants have reduced production or shut down entirely, entering a "cold mode" of idling. A stark example of this failure is the world-renowned BASF.

BASF is the largest chemical conglomerate in the world. It could synthesize just about anything—from aspirin to components for space rockets. But it has been unable to produce affordable gas.

Remarkably, BASF shut down its operations only in Germany. For the conglomerate, China, the USA, and other countries are far more advantageous in terms of operational costs. It sounds incredible, but that is the reality.

The Germans place the blame for the industrial downfall of their giants on the “green” economy. Ironically, no factories mean no emissions—implying that the environment has improved. Yet, even humor cannot hide the bitter truth: 78 large enterprises have closed, resulting in an economic damage of 210 billion euros and the loss of 320,000 jobs.

The closures of factories across Germany, the reduction in production, mass layoffs, and the bankruptcy of thousands of companies — all these point to a deepening economic crisis. Public protests are erupting, and Germany’s flagship industries are stagnating.

What is happening to the German industrial giants? Why is the government allowing this destruction? And what does the future hold for the country's economy?