Itera, one of Russia’s biggest producers of natural gas, is teaming up with the country’s biggest oil and gas company.

The joint venture with Rosneft will see the two companies expand further into the gas market.

Longer term Itera plans to join all Rosneft gas assets under its name.

“With the joined gas supplies, governmental support from Rosneft, and the 20–year experience of Itera enormous perspectives are opening up to the joint venture,” Itera said.

The joint venture aims to extract up to 1.2 trillion cubic metres of natural gas a year, with sales volumes standing above 40 billion cubic metres a year in the near future.

A bid by TNK-BP to partner Itera recently failed. “TNK – BP could give us just money, and we wanted a partner that would let us expand our gas business,” Itera explained.

At the moment Itera operates in several districts of the Russian Urals.

Currently Gazprom remains a leader in Russia’s gas market, with the joint venture not likely to ruin Gazprom monopoly