How is BASF's strategic shift in China reshaping the NPG supply landscape?

How is BASF's strategic shift in China reshaping the NPG supply landscape?
BASF's exit from its Jilin NPG joint venture with PetroChina marks a clear strategic pivot. The company cited rapid domestic capacity expansion and a lack of integrated feedstock support at the old site. Meanwhile, its new 80,000-ton/year NPG plant at the Zhanjiang Verbund site started up in Q4 2025, lifting BASF's global capacity from 255,000 to 335,000 tons. The Zhanjiang site benefits from on-site upstream integration, 100% renewable power, and proximity to key coating markets in South and East China. This move consolidates BASF's position in higher-value, environmentally compliant production while reducing exposure to older, less competitive assets. For the domestic market, it signals that new capacity will increasingly be built around integrated, low-carbon platforms, raising the bar for standalone NPG producers.