Kazakhstan supports China tapping Caspian oil and gas

BEIJING, April 15 (Reuters) - Kazakhstan will support China in developing oil and gas resources on the continental shelf of the Caspian Sea, a joint communique by the two governments showed on Tuesday, as the two seek closer ties.

The two sides will try to complete talks on the Darhan block, the communique posted on Chinese foreign ministry's Web site (www.fmprc.gov.cn) said, without providing details about existing discussions.

Both governments also agreed that they would create favourable conditions to ensure construction of a natural gas pipeline be completed by the end of 2009, and endorsed all agreements already signed to extend an existing oil pipeline, according to the communique.

China oil major CNPC, the parent of PetroChina (0857.HK: Quote, Profile, Research), said last week it would start full-scale construction of the gas line this year, eventually pumping 30 billion cubic metres of gas a year to China from central Asia countries including Turkmenistan.

CNPC in December last year began to extend the China-Kazakh crude pipeline from Kumkol to Kenkiyak that would eventually transport 400,000 barrels a day of oil, or nearly a tenth of China's record crude oil imports in March.

The existing $800 million, 600-mile oil pipeline from Atasu in Kazakhstan to Alashankou in China shipped most of China's 6 million tonnes of oil imports from the central Asian country last year.

Beijing sees its central Asian neighbours as strategic partners to secure oil and gas supplies for its booming economy, while the latter view the world's second-largest energy user as an indispensible market to diversify away from their Western consumers.

(Reporting by Jim Bai; Editing by Nick Macfie)