BASF may invest €1B to build gas complex in U.S.

|About: BASF SE ADR (BASFY)|By:, SA News Editor

BASF (BASFY -1.2%) says it is considering investing more than €1B ($1.39B) to build a gas complex on the U.S. Gulf coast to take advantage of low-cost shale gas; if completed, it would be the single-largest plant investment in the company's history.

The methane-to-propylene complex would supply BASF's North American operations, converting natural gas into propylene, a building block for the chemicals industry.

The plans were revealed as BASF reported a 2.1% rise in Q1 profit to €1.48B, reflecting improved margins in specialty chemicals and agriculture, while sales fell 1.1% to €19.5B due to delays in oil and gas production.