China, Pakistan plan trans-Asia "energy corridor"

ISLAMABAD, Apr 28 (Reuters) Pakistan and China have signed a memorandum on building an ''energy corridor'' to allow China access to the oil and gas resources of Central and Western Asia, Pakistan's foreign ministry said on Friday.

A ministry statement, issued at the end of a three-day energy forum attended by firms from both countries, specified that the corridor would include developing oil refining and storage capacity in Pakistan's coastal areas.

The memorandum of understanding, signed by officials, also set out China's support for oil and gas exploration in Pakistan, and help for Pakistan to develop its coal and lignite as well as renewable energy resources.

China is helping to build Gwadar port in the southwest Pakistani province of Baluchistan.

The proposed corridor includes building a network of roads and pipelines from central and western Asia, one component of which would be a Turkmenistan-Pakistan pipeline that could be extended to India, Myanmar and China.

The United States last month offered support for Pakistan's energy sector. But while the United States has offered India help with its civil nuclear programme, Washington told Pakistan that it cannot expect similar treatment.

The ministry's statement did not mention nuclear energy, although Pakistan is seeking Chinese help to build more nuclear power plants.

Nuclear energy currently accounts for a tiny proportion of Pakistan's power generation.

Pakistan's Energy Security Plan (2005-2030) forecasts a seven-fold increase in total primary consumption and an increase of more than eight-fold in the requirement for power over the next 25 years.

Reuters PR GC2218