FOCUS Dow's plans to work with Gazprom not expected to thwart BASF's plans |
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Tue, 30 Jan 2007 12:29
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FRANKFURT (AFX) - Dow Chemical Co is in talks with Gazprom over the possibility of building joint production facilities, but this is not expected to thwart plans by Dow's German rival BASF AG to set up a similar project with the Russian gas giant, analysts said.Dow Chemical is hopeful about closing a deal to create a joint plant with Gazprom.'I am very optimistic that Dow and Gazprom can close a deal,' Dow's CEO Andrew Liveris told the Financial Times Deutschland on the sidelines of the World Economic Forum in Davos.The newspaper described the move as direct competition to BASF, which is mulling a similar scheme.But Bayerische Landesbank analyst Michael Butscher said: 'I cannot see how BASF's work with Gazprom could be jeopardised by Dow Chemical's plans because BASF has been working with Gazprom for years.'Another analyst added: 'This is positive news for BASF. For years, there was doubt as to why BASF wanted to focus on oil and gas, but Dow Chemical's interest now consolidates the fact that BASF has been on the right track.'A BASF spokesman confirmed the company is discussing the possibility of setting up a joint manufacturing operation with Gazprom, but added that nothing is set in stone.Dow Chemical and state-owned Gazprom announced in May 2006 that they would consider working together.BASF, which began working with Gazprom in 1992, is building an energy pipeline with E.ON AG and Gazprom under the Baltic Sea which is due to become operational in 2010.krysia.diver@afxnews.comkd/twCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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