Russia, Kazakhstan to create joint venture to process Kazakh gas

Under the terms of the deal, both countries would have an equal share in the venture, which will expand the capacity of the Soviet-built Orenburg refinery.

Photo: Russia, Kazakhstan to create joint venture to process Kazakh gas

Russian President Vladimir Putin called the project - which envisages an annual output of at least 15 billion cubic meters - a "humble but important" contribution to energy security, the central theme of Russia's G-8 presidency.

The deal comes as competition for Kazakhstan's energy resources intensifies. U.S. Vice President Dick Cheney paid a high-profile visit to the country in May to lobby for American energy interests. European Union Energy Commissioner Andris Piebalgs also traveled to the Kazakh capital, Astana, in May to discuss the possibility of a Europe-bound gas pipeline that could skirt Russia, according to the AP.