Via Todd Sullivan’s Value Plays, an interesting review of a recent MOU signed between Russian natural gas monopoly OAO Gazprom and Dow Chemical outlining potential cooperation on refining gas from Russia’s Yamalo-Nemets autonomous district and the possibility of creating a joint venture based on Dow’s new petrochemical facilities in Germany.  While I am not sure I sustain the same level of excitement as Mr. Sullivan regarding Dow as a stock, he does note some interesting possibilities:

“…In late October Gazprom announced an agreement with Statoilhydro (over) the Shtokman gas and condensate field located in the central part of the Russian sector of the Barents Sea offshore.

Approved by the RF Nature Ministry’s State Commission for Mineral Resources in January 2006, Shtokman’s C1+C2 reserves make up 3.7 tcm of gas and over 31 mln t of gas condensate.

In October 2006, the Gazprom Management Committee decided that pipeline gas deliveries from the Shtokman field to the European market would take priority over LNG shipments. Shtokman was identified as the resource base for Russian gas export to Europe via the Nord Stream Gas pipeline.

Phase 1 stipulates production of 23.7 bcm of natural gas per annum, gas and LNG supplies via the gas pipeline will start in 2013 and 2014, respectively.”

…The potential JV would give Gazprom access to new petrochemical facilities set up by Dow in Germany. In return Dow would refine gas at Gazprom’s fields in the Yamalo-Nemets region in the north of Russia. Essentially Dow would have the inside track in building the Russian petrochemical industry. This follows similar deals for Dow in both Saudi Arabia and China.”