Gazprom and KazMunaiGas to establish JV in Orenbourg this year

/REUTERS, Moscow, March 18, 05/ - Gazprom OJSC and NAC KazMunaiGas agreed on complementation of Orenbourg-based JV adoption within 2005, Gazprom press service told. During the meeting both parties confirmed the creation of a joint venture that would modernize Orenbourg gas refinery in order to enhance the refining capacity up to 15 bm cubic meters of gas incoming from Karachaganak field", the announcement states. Vladimir Shkolnik, Kazakh Minerals Minster, said earlier that JV provides for 50/50 participation. In October of 2002 Gazprom, Orenbourgprom and Karachaganak Integrated Company inked an agreement under which gas from Karachanganak oil field is supplied to Orenbourg gas refinery. Annual gas supply totals 7 bn c m in average. KazRosGas JV procures and supplies gas. Kazakhstan produces 11 -12 bn cubic meters of gas in average, whereas internal consumption equals 5 bn annually. Oil-rich Central Asian state contemplates boosting its producing capacity to 14 bn and 40 bn cm by 2005 and 2020 respectively. [2005-03-18]