North Korean leader Kim Jong-il toured a hydro-electric power station in eastern Siberia on Sunday in the second day of his trip to Russia, diplomatic sources said.

   Kim's trip to the Bureiskaya hydro-electric power station in the Amur region fueled speculation that the two countries could discuss enhancing bilateral cooperation in energy.

   In recent years, Russia proposed transmitting surplus electricity produced by the power station to the Korean Peninsula.

It has also proposed building a pipeline through the divided peninsula to sell Siberian natural gas to South Korea, one of the world's largest natural gas consumers.

   The project, if realized, could help ease tensions on the divided peninsula and bring much-needed hard currency to North Korea. North Korea can expect to earn more than US$500 million a year in handling charges over the gas pipeline, according to South Korean analysts.

(Yonhap News)