UpdateDow could build in Germany with Russia gas

27 November 2007 15:31  [Source: ICIS news]

(Releads, updates and adds further detail throughout)

By Nigel Davis and Sergei Blagov

Gazprom gaining advantage in Germany and RussiaLONDON (ICIS news)--Dow Chemical is studying a plan to bring gas from Russia to Germany to process into hydrocarbons, the company said on Tuesday.

The gas could be brought from Siberia to plants in central Germany at Böhlen and Schkopau for further processing, it said.

Dow, Russian gas giant Gazprom and its petrochemicals offshoot Sibur signed a memorandum of intentions (MoI) on Tuesday on natural gas processing, Gazprom said in a statement.

According to the agreement, Gazprom, Sibur and Dow would study the possibilities of joint gas processing projects near the Valanzhinsk gas deposits in Russia's Yamalo-Nenets Autonomous Region, as well as a possible joint venture based at Dow's petrochemical production units in Germany.

The MoI builds on a memorandum of understanding (MoU) signed in May last year between Dow and Gazprom to jointly advance their hydrocarbons capabilities.

In Germany, Dow produces a range of chemicals, including olefins, aromatics polyolefins and synthetic rubber.

“The two companies have identified a list of projects,” a Dow spokesman in Moscow told ICIS news. “The projects identified as feasible will be announced over the coming months,” he added.

The MoI was seen as a clear step forward in the companies’ joint plans and a firm project was expected to be forthcoming in months rather than years.

The companies would create a joint working group to conduct prefeasibility studies of a possible joint venture and draft an agreement on further feasibility studies, the Gazprom statement said.

By: Nigel Davis
+44 20 8652 3214

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