PetroChina needs the extra income to make "investments in the downstream gas distribution sector as it prepares to spin off pipeline assets," said Wang Haohao, gas analyst with consultancy Zibo Longzhong. Beijing plans to launch this year a national oil and gas pipeline company that will combine assets from PetroChina, China National Offshore Oil Corporation (CNOOC) and Sinopec, a move aimed at spurring private and foreign exploration investment. The price increases sought would apply to wholesale rates that PetroChina charges provincial piped-gas distributors, power plants and big industrial users such as fertilizer producers.