Reuters quoted piped gas supplier China Gas Holdings said that PetroChina is in talks to invest in a China Gas unit which will distribute liquefied petroleum gas for Asia top oil producer.

Mr Eric Leung CFO of China Gas said the company and PetroChina would soon conclude a business tie up under which China Gas unit Shanghai Zhongyou Energy Holdings Co Ltd would distribute LPG for PetroChina.

He said that PetroChina processed a total of 6 million tonnes of LPG per year at 28 refineries owned by unit CNPC Kunlun Natural Gas Co Ltd.

Mr Leung said China Gas expected Beijing to announce a reform of natural gas prices by the end of 2009, which would link natural gas prices with those for crude oil. He said natural gas prices in China would catch up with international prices rising 10% to 12% per year over the next five years.

(Sourced from Reuters)