Shanxi Guohua Energy Co signed a strategic partnership agreement with Sinopec Gas Co in Taiyuan, capital of Shanxi province, on March 20.
The two sides have agreed to work together on peak shaving, sales and the transportation of natural gas, including coalbed gas.
Peak shaving involves supplying gas to some areas from close to the energy source in order to reduce the load factor on gas infrastructure.
The partnership is expected to help improve the supply of natural gas, as well as storage and sale systems and supply capacity at peak periods.