China and Kazakhstan have signed a deal to build and finance a natural gas pipeline and deepen their cooperation on nuclear energy, extending the two countries' ties on resources. Under the agreement signed recently during a visit by Chinese President Mr Hu Jintao, the two countries will build a 1400km gas pipeline.

It will link with an existing gas pipeline running between China and Central Asia. China National Petroleum Corp. said the project will help meet gas demand in southern Kazakhstan. Feasibility studies will also be undertaken, looking at increasing gas exports to China from the Caspian Sea area and other Central Asian countries through the pipeline.