The Catalyst Review October 2024 - 5

COMMERCIAL NEWS
BASF Presents New Corporate Strategy:
BASF is Setting a New Direction for Portfolio
Steering, Capital Allocation and Performance
Culture
BASF announced its new streamlined methodology to the
process of simplifying different aspects of the company
for easier management and profit growth. Starting with the
company's aim to distribute around $8.7B to shareholders
from 2025 to 2028, complemented by share buybacks,
followed by portfolio diversification. Building on the current
portfolio while expanding themselves for future business
endeavors, is a driving factor. Differentiation of the portfolio
would derive from 'Core' business and 'Standalone' business
ideas. To meet customer demand for green transformation
with its chemical projects, this will be implemented in phases.
Source: BASF News Release, 09/26/2024.
Woodside and JERA Sign Agreement for
Long-Term LNG Supply
Woodside has signed its first long-term sale and purchase
agreement (SPA) with JERA for the supply of liquefied natural
gas (LNG) to Japan, effective April 2026. Over the course of
ten years, Woodside will supply approximately 0.4 million
tonnes of LNG each year to JERA. This SPA is a follow up from
a previous announcement in February whereby Woodside
agreed to sell JERA a 15.1% non-operating participating
interest in the Scarborough Joint Venture, with anticipated
completion before the end of 2024. Woodside Executive Vice
President and Chief Commercial Officer, Mark Abbotsford,
commented that this SPA deepens the commitment for the
two companies to expand on with future business prospects.
Source: Woodside Energy, 09/18/2024.
Honeywell Completes Acquisition of Air
Products' LNG Process Technology and
Equipment Business
With the completion of a $1.81B all-cash transaction,
Honeywell finalized its addition of Air Products' liquefied
natural gas (LNG) process technology and equipment to its
portfolio. Honeywell's worldwide client portfolio gains a robust
end-to-end scalable solutions package, including natural
gas pre-treatment, state-of-the-art liquefaction and digital
automation technologies, along with Air Product's coil-wound
heat exchangers (CWHE) technology. This is Honeywell's
fourth acquisition in 2024 supporting its disciplined capital
deployment strategy. This strategy focuses on high-return
acquisitions that will boost future growth across its portfolio.
Source: Gas Processing & LNG, 10/01/2024.
The Catalyst Review
ADNOC Agrees to €14.7B ($16B) Takeover of
Covestro
As the second largest Middle Eastern acquisition, ADNOC
is set to purchase Covestro for $16B, which includes:
a purchase price of $67.3 per share, incurring $3.3B in
debt and committing to a purchase of $1.3B worth of
additional shares in Covestro, which is set to occur when
the transaction closes. In the sale agreement, ADNOC
committed to sustaining the company's current business
practices, corporate governance and organizational business
structure. This new addition of Covestro's products such as
isocyanates, polyurethanes, polycarbonates and polyols
will supply ADNOC's decarbonization portfolio, supporting
ADNOC's initiative to move away from its traditional reliance
on crude oil and natural gas operation. Covestro views
ADNOC as a " financially strong and long-term oriented
partner with whom we will further drive our successful
'Sustainable Future' strategy in all market conditions. Our
complementary growth strategies, shared commitment to
advanced technologies, innovation and sustainability are key
cornerstones of our partnership, " said Markus Steilemann,
CEO of Covestro. Source: Chemical Week, 10/01/2024.
Saudi Arabia to Invest $10B in Green
Hydrogen Production
Saudi Arabia's sovereign wealth fund, chaired by de facto
ruler Crown Prince Mohammed bin Salman, created Energy
Solutions Co. to finance green hydrogen power production.
This is in preparation of an expected $10B investment from
the Public Investment Fund to produce the low-carbon fuel.
There is a potential for significant follow up investments,
depending on demand and outside investments. Saudi
Aramco will provide some of the future investments to this
project. This initiative is targeted to support Saudi Arabia
becoming
one of the
largest
producers
of green
hydrogen
in the
world. The
kingdom's
goal is to
reduce its reliance on oil sales but remain a global energy
supplier. Source: World Oil, 10/07/2024.
October 2024
5
The Catalyst Review October 2024

Table of Contents for the Digital Edition of The Catalyst Review October 2024
