China Oil and Gas Group Ltd said its 51 pct-owned indirect subsidiary China City Natural Gas Co Ltd (CCNG) will invest 800 mln yuan in a gas pipeline project in Chaozhou, a city in Guangdong province.

It said CCNG has entered into an agreement with local authority of Chaozhou to supply natural gas to homes and industry and to operate some natural gas service stations for vehicles.

Separately, Petrochina Co Ltd has signed an agreement with the Chaozhou government to supply supply two bln cubic meters of natural gas to the city annually.

China Oil and Gas said CCNG will have exclusive rights to downstream natural gas sales and distribution in Chaozhou.

At 11:10 am, China Oil and Gas traded at 0.96 hkd, down 0.04 hkd or 4.0 pct.