Dow, Gazprom to work on reducing greenhouse gases

Workers stand near pipes at a gas compressor station in the Ukrainian settlement of Orlovka, about 280 km (174 miles) west of the Black Sea port of Odessa, January 15, 2009.

NEW YORK (Reuters) - Dow Chemical Co and Russia's Gazprom Marketing and Trading Ltd said on Thursday they will work together to develop and implement greenhouse gas reduction projects around the world.

The companies signed a memorandum of understanding to identify projects that could reduce millions of tons of carbon dioxide emissions through Dow technologies and other cooperative efforts, they said in a joint news release.

Dow and Gazprom, which produces and markets natural gas and other hydrocarbons in Russia and elsewhere, will also collaborate on projects in the evolving U.S. carbon market, they said.

The two companies will identify global projects that qualify for Clean Development Mechanism or Joint Implementation status according to the United Nations Framework Convention on Climate Change requirements, they said.

"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.

"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," said Vitaly Vasiliev, chief executive officer of Gazprom Marketing and Trading.

(Reporting by Steve James, editing by Dave Zimmerman)