As part of a wider energy sector cooperation plan between the two, they will reportedly be negotiating over the Darhan Block and have agreed to create favorable conditions to construct a natural gas pipeline by the end of 2009.

The two have also endorsed all previous agreements signed to extend the existing China-Kazakhstan oil pipeline.

China National Petroleum Corp. said it will begin the construction of the proposed gas pipeline in 2008 to help China import about 30 billion cubic meters of gas from central Asia.

CNPC has already begun work on the extension of the China-Kazakhstan oil pipeline, which is expected to transport around 400,000 barrels of oil per day on completion.