China National Petroleum Corp., the nation's largest oil explorer, will expand its fuel and natural gas business in Zhuhai, a city in the southern province of Guangdong, to meet rising energy demand.

China National, the parent of overseas listed PetroChina Co., signed an agreement with Zhuhai city to cooperate on oil refining, fuels distribution and natural gas development, the Beijing-based company said on its Web site today, without providing details.

Major oil producers in China are competing to meet increasing demand for gasoline, diesel and cleaner-burning natural gas in Guangdong, whose economy accounts for one-eighth of the nation's total. China National will accelerate its development in the southern province, company President Jiang Jiemin said in today's statement.

China National will supply piped natural gas to Zhuhai starting next month, after its piped-gas unit agreed to buy a stake in the natural gas distributor in the city, China National said in July.