30 January 2007 05:55 [Source: ICIS news]
SINGAPORE (ICIS news)--Dow Chemical and energy major Gazprom are in negotiations to jointly set up new units in Russia, and a partnership may come into fruition this year, the website of a European financial newspaper said on Tuesday.
Dow’s president and chief executive Andrew Liveris said that Dow could cooperate with Gazprom on the building of mass chemical production facilities, in return for the sale of feedstock from it at a lower price.
He was speaking in an interview with Financial Times Deutschland on the sidelines of the World Economic Forum Annual Meeting in Davos.
"I am very optimistic that Dow and Gazprom will form an alliance," Liveris reportedly said.
"We are a very advanced provider of technology. Gazprom would be able to achieve a great deal of synergy from it," he added.
The current round of discussions follow the companies’ initial announcement in May 2006 that they were studying the feasibility of joint projects, the interview said.
The report also noted that Dow’s plans come in direct competition with Germany’s BASF, which, with Gazprom, formed the natural gas joint venture WINGAS in 1990.
BASF’s chief Jürgen Hambrecht was reported to be also in discussions with Gazprom on expansion plans, but said: "We are discussing such issues, but it has not come to a stage where decisions can be made."
He declined comment on Dow’s planned cooperation with Gazprom.
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