Russian oil and gas company Gazprom’s subsidiary Gazprom Gazomotornoye Toplivo has signed a memorandum of intent with Yacimientos Petroliferos Fiscales Bolivianos (YPFB) to set up a joint venture (JV).
The agreement was signed at the 4th Gas Exporting Countries Forum Gas Summit in Santa Cruz, Bolivia.
Under the agreement, the companies will work together in a JV to develop the production and marketing infrastructure for compressed and liquefied natural gas to be sold as a vehicle fuel.
In addition, the proposed infrastructure will cover autonomous gasification in the Plurinational State of Bolivia and other Latin American countries.
In February last year, Gazprom and YPFB signed an agreement that provided for strategic cooperation in exploration, production and transportation of hydrocarbons, construction and modernisation of oil and gas infrastructure in Bolivia.
The agreement also focused on promoting the use of gas as a vehicle fuel in Bolivia, as well as implementing joint R&D projects.
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By GlobalDataFurthermore, the parties also agreed to explore the possibilities of jointly working on energy projects based in other countries.
In a separate development, the Gazprom management committee approved the company’s draft investment programme and budget for next year.
Under the programme, the company’s overall amount of investments will stand at RUB1,278.83bn ($21.89bn).
Gazprom will invest RUB798.428bn ($13.66bn) of the total amount for capital investments, while RUB40.983bn ($701.49m) will be allocated for the acquisition of non-current assets, and RUB439.419bn ($7.53bn) will be used for long-term financial investments.