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Gazprom, KMG explore creation of gas processing joint venture

PJSC Gazprom of Russia and Kazakhstan’s state-owned JSC National Co. KazMunayGas (KMG) are exploring the possibility of creating a joint venture to process gas from Karachaganak oil, gas, and condensate field using the capacities of the existing Orenburg gas processing plant in Russia (OGJ Online, June 18, 2015).

The companies signed a roadmap agreement for setting up the Russian-Kazakhstani JV at the 7th St. Petersburg International Gas Forum on Oct. 5, Gazprom said.

As part of the roadmap, the parties have agreed to create a working group as well as conduct a feasibility study for the proposed combine.

The companies, however, did not disclose a timeframe for when they would reach a final decision on the new group.

Discussion for this latest possible collaboration follows an existing partnership between Gazprom and KMG in their KazRosGas LLP venture, which was established in June 2002 on a parity basis for processing gas from Karachaganak field at the Orenburg gas plant and selling it to consumers in Kazakhstan and Russia beginning in 2007.

The Orenburg plant has installed capacities to process 37.5 billion cu m/year of natural and associated gas as well as 6.26 million tonnes/year of oil and gas condensate, according to Gazprom’s web site.

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