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PetroChina, the country's largest oil and gas producer, will invest 10 billion yuan (US$1.3 billion) in building facilities for new energy production by 2010, a senior company official said.

Hu Wenrui, vice president of PetroChina, told a recent forum that the investment is expected to reap three million tons of oil equivalent in new energy resources production capacity.

"This will help guarantee the energy safety of the fastest growing economy and the world's largest energy consumer only second to the United States," he said.

The oil giant's business on new energy sources covers non-conventional energy including coal-bed methane, oil shale, oil sands and renewable energy such as wind and solar power, bio- and geothermal energy.

PetroChina's output of coal-bed oil, fuel ethanol and biodiesel and that of shale oil and sand oil are expected to account for 40 and 20 percent respectively of the nation's total by 2010, Hu said.

He added the company will also take advantage of its resources, technology and funds to closely follow the latest developments in hydrogen energy and natural gas hydrate.