Houston, TX - June 18, 2009
The Dow Chemical Company (NYSE: Dow) and Gazprom Marketing and Trading Limited announced today they have signed a memorandum of understanding (MOU) to develop and implement greenhouse gas (GHG) reduction projects on a global basis. Through this agreement, both companies will work together to identify projects that could cumulatively reduce millions of tons of carbon dioxide (CO²) emissions through the implementation of Dow technologies and other cooperative efforts.
Gazprom Marketing and Trading will provide a route-to-market for emissions offsets and utilize its global counterparty base to bring Dow's technologies to market. Successful implementation of these projects will bolster Gazprom Marketing and Trading's carbon portfolio with additional certified offsets and drive significant reductions in global GHG emissions.
The two companies will work together to identify global projects that qualify for Clean Development Mechanism (CDM) or Joint Implementation (JI) status according to the United Nations Framework Convention on Climate Change (UNFCCC) requirements. Dow and Gazprom Marketing and Trading will also collaborate on projects in the evolving U.S. carbon market.
"Through this agreement with Gazprom Marketing and Trading, Dow products and technologies will have a channel to global oil and gas markets, and we will have access to certified emission reductions," said Rich Wells, Dow vice president of Energy and Climate Change. "This agreement aligns to our corporate strategy of participating in global offset projects to mitigate CO² impact."
"Gazprom Marketing and Trading is proud to be an environmentally responsible company. Today's agreement to collaborate on projects that will reduce greenhouse gas emissions is one more example of how we strive to reduce our carbon footprint. We are very excited to work with Dow and believe their technologies offer a wide array of proven carbon-reduction methodologies that will drive customer value as the world addresses the climate change challenge," said Vitaly Vasiliev, CEO of Gazprom Marketing and Trading.
The agreement reinforces both companies' commitment to setting the standard for sustainability by providing innovative solutions to the world's energy and climate issues.
"Gazprom's global brand and large gas portfolio make it a great partner for us. We are excited to work together to deliver solutions for the global oil and gas market," said Janet Giesselman, general manager, Dow Oil and Gas. "Dow Oil and Gas products are proven technologies that have successfully lowered energy requirements while reducing carbon emissions."
To find out more about Certified Emissions Reduction project mechanisms, please visit UNFCCC's website.
About Dow
About Gazprom Marketing & Trading
Gazprom is a global energy company engaged in the exploration, production, transmission, storage, processing and marketing of natural gas and other hydrocarbons both in Russia and around the world. Gazprom is the world's biggest natural gas producer, with reserves estimated at 33.1 tcm and 17 per cent of the world's total gas reserves. It owns the world's largest transmission system and exports natural gas to more than 31 countries. Gazprom is Russia's largest company and accounts for 83 per cent of the country's gas production and about 70 per cent of its reserves. Gazprom's total investment programme for 2009, which consists of capital expenditure and long-term investments, is RUB 920 billion. Gazprom Marketing & Trading Ltd. is a UK registered wholly-owned subsidiary of Gazprom based in London that was established in 1999 to manage Gazprom's marketing and trading activities in liberalizing markets in Western Europe.
For Editorial Information:
Eric Kosmider
The Dow Chemical Company
+1.989.636.0626
Paul Cohen
Ketchum, on behalf of Gazprom Marketing and Trading
+1.646.935.3934
paul.cohen@ketchum.com
