Gazprom and Dow Chemical sign memorandum on deep hydrocarbons refining

Russian gas export monopoly Gazprom, petrochemical firm Sibur and U.S. chemicals maker Dow Chemical Co have signed a memorandum on deep hydrocarbons refining, Gazprom and Dow Chemical said on Tuesday.

Photo: Gazprom and Dow Chemical sign memorandum on deep hydrocarbons refining

The companies said in a statement that they would consider creating a joint venture to process natural gas produced at Gazprom's deposits in the Yamalo-Nenets region, Reuters reports.

"The document envisages studying the prospects of creating a joint venture at the base of new Dow Chemical petrochemical capacities in Germany, joint refining of natural gas from the deposits in the Yamalo-Nenets region and cooperation in other fields," the companies said in a statement.

Gazprom has used offers of participation in projects in resource-rich Russia to secure deals that expand its presence in gas refining and distribution in Europe.

Its efforts have sparked concern in Europe about overreliance on Russia, which supplies up to 40 percent of the European Union's natural gas, the AP reports.

Sibur Holding is a subsidiary of Gazprombank, which is in turn controlled by Gazfond, a pension fund co-owned by Gazprom and its subsidiaries, Prime-Tass reports.

Source: agencies