BEIJING, Nov. 9, 2009 (Xinhua News Agency) -- PetroChina (PTR.NYSE; 0857.HK; 601857.SH) Kunlun Gas, which specializes in operating towngas businesses, has signed with Harbin city, capital (OOTC:CTCC) city of northeastern Heilongjiang province, to provide compressed natural gas (CNG) to motorcars.

Industry watchers believe Kunlun's gas will come from the Daqing oilfield, China's largest oilfield by crude oil output, also in Heilongjiang province, through the newly built Harbin-Daqing gas pipeline.

The Daqing oilfield has been recently seeking to increase its natural gas output while ensuring its annual oil and gas production to stay at 50 million tons of oil and gas equivalent. It in its first nine months produced 2.256 billion cubic meters of natural gas and in 2008 its gas output reached 2.796 billion cubic meters.