PetroChina signed a gas supply contract with a Shanghai distributor and began selling natural gas brought to the city by its multibillion dollar West-East pipeline.
The move highlighted PetroChina's ability to push the pipeline project ahead without the significant involvement from a consortium of foreign partners that had been previously expected. A group of foreign oil firms and investors led by Royal Dutch/Shell was to take a 45 percent stake in the project, but Shell's involvement has yet to proceed beyond the discussion stage.
The pipeline is aimed at reducing eastern China's dependence on coal and other high pollution fuels.