CNPC, Tibet sign natural gas supply deal

State-owned China National Petroleum Corp. and the Autonomous Regional Government of Tibet have signed a framework agreement on the supply of natural gas by CNPC to Tibet, with which the Chinese government’s relations have long been strained.

“This is a major step forward taken by the two sides to strengthen cooperation, so as to guarantee energy supply to Tibet, optimize the local energy consumption mix, improve people's living conditions, and protect the ecological environment of the region,” CNPC said in a statement.

The company last year began delivering LNG to Lhasa from a new liquefaction plant at Golmud in Qinghai Province, displacing LPG and diesel.