BASF Puts-off Coal to Gas Petrochemical Plan

BASF has put off plans for a massive $2.5 billion coal gasification project due to uncertainties over the costs of Europe's emission trading scheme. The petrochemical complex would produce gas from coal as widely practiced in China to make methanol and ammonia, initially planned to be built either at BASF’s base in Ludwigshafen, Germany, or elsewhere.

Coal is regarded as cheap feedstock compared to natural gas for key raw material to the petrochemical industry.