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Gazprom approved a deal Tuesday to set up a joint venture with Kazakhstan to process Kazakh natural gas in Russia
Gazprom [RTS: GAZP] approved a deal Tuesday to set up a joint venture with Kazakhstan to process Kazakh natural gas in Russia. The Russian energy giant said in a release said it was intending to establish the joint venture with Kazakhstan's KazMunaiGaz on a parity basis to process gas produced at the Karachaganak deposit in northwestern Kazakhstan at a facility 130 kilometers (80 miles) in Orenburg. Kazakhstan has about 2,000 billion cubic meters of proven gas reserves. Natural gas reserves, including the shelf of the Caspian Sea, are estimated at 8,300 billion cubic meters. The Karachaganak deposit is being developed by Karachaganak Petroleum Operating, an international consortium that includes some leading world oil and gas companies and Russia's No. 1 independent crude producer, LUKoil. The deposit is expected to increase output to 25 billion cubic meters by 2012.
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