ST. PETERSBURG, January 10 (RIA Novosti) – Russian energy giant Gazprom and Russia’s largest independent gas producer Novatek have signed a deal to jointly produce liquefied natural gas (LNG) on the Yamal Peninsula in the Russian Arctic, the companies said on Thursday.

The deal was signed by Gazprom CEO Alexei Miller and Novatek Board Chairman Leonid Mikhelson.

Gazprom announced in late December 2012 it planned to create a joint venture with Novatek to develop the Tambei group of gas fields. Gazprom said at the time it planned to get a 75 percent stake in the joint venture while Novatek would hold 25 percent.

Miller said on Thursday the venture, which will focus on LNG production for the Asia-Pacific region, would define the parties’ stakes and contributions by August 1 this year and will be established by the end of 2013.

The Tambei group of gas fields on Yamal holds 1.56 trillion cubic meters of natural gas and could produce up to 20 million tons of LNG per year.