The presidential approval paves the way for the signing of an agreement between the companies, the spokesman said.

Stroytransgaz and Uzbekneftegaz plan to sign an agreement on the creation of the joint venture in January-March 2008, according to earlier reports.

The joint venture will produce LNG at the Mubarek Gas Processing Plant.

Stroytransgaz plans to build a unit for the production of LNG at plant, Prime-Tass reported.

Stroytransgaz will contribute US$110 million for the construction, Uzbekneftegaz will provide US$45.5 million, Uzbekistan’s Fund for Reconstruction and Development will provide US$35.5 million and an unspecified Chinese bank will lend US$30 million, Uktam Umarov, director of the Mubarek Gas Processing Plant, said earlier.

Stroytransgaz and Uzbekneftegaz will own the joint venture on a parity basis.

When the joint venture reaches its projected capacity, it will process 12 billion cubic meters of natural gas annually and produce 270,000 tonnes of LNG and 70,000 tonnes of gas condensate.