In its first phase, about 1,200 kilometres of pipeline will be laid from the western part of the central Asian country to China, capable of handling 10 to 20 million tons of oil a year.

The deal was signed after a meeting between Chinese President Hu Jintao and his Kazakh counterpart Nursultan Nazarbayev at the presidential palace in the Kazakhstan capital.

They also signed a joint declaration yesterday on closer co-operation between the two countries in many aspects, particularly in fighting terrorists, separatists and extremists.

The two neighbouring countries vowed to fight these three evil forces, which, the document said, are posing serious threats to global security and stability.

China and Kazakhstan will work together to combat the "three forces" on a bilateral and multilateral basis, it said.

Both sides are determined to take more effective measures to fight terrorism in any form, including the "Eastern Turkistan Islamic Movement," so as to safeguard peace and stability of the two countries and the region.

"Both sides believe that the fight against the 'Eastern Turkistan Islamic Movement' is an important part of the international campaign against terrorism," the two leaders said in the joint declaration.

On energy co-operation, the declaration said that the two countries will focus on petroleum and natural gas.

Both pledged to take effective measures to carry out joint projects and conduct research on the feasibility of building a natural gas pipeline between Kazakhstan and China.

Kazakhstan expressed its support for China's efforts in oil exploration and development in the Caspian Sea seabed, according to the declaration.

Nazarbayev said that Hu's visit proves the strength of China-Kazakh relations.

"We treasured President Hu's visit very much," he said.

Kazakhstan is willing to work with China to further strengthen bilateral ties, Nazarbayev said.

During yesterday's separate meetings with Nazarbayev and Prime Minister Imangali Tasmagambetov, Hu reaffirmed the new Chinese leadership's policy of developing a stable and long-term friendship with Kazakhstan.

Nazarbayev said that Kazakhstan has always given priority to its partnership with China, adding that the relationship between the two countries contributed greatly to regional stability and security.

Xing Guangcheng, general secretary of the Chinese Association for East European, Russia and Central Asian Studies, said that strengthened economic relations have brought the two countries and peoples substantial benefit, by creating jobs in Kazakhstan and generating revenue for both sides.

Xing said there is still potential for expanding economic relations between China and Kazakhstan, for example, by improving cross-border transport.

China could become a major transit point for Kazakh products entering South and East Asian markets, while it could tap the European market through Kazakhstan, the expert said.

During yesterday's meeting, Hu also briefed Nazarbayev on China's fight against SARS, saying it had introduced strict measures to prevent the infection from spreading into other countries.

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