There are more signs that China's oil and gas sector, traditionally dominated by the State-owned companies, will be more open to private capital following China Petrochemical Corp's announcement last week that it will open up 30 percent of its retail business sector.

The private steel company Guangzheng Group said on Friday it has signed a cooperation agreement with the corporation, also known as Sinopec, to jointly develop a natural gas business in western Xinjiang Uygur autonomous region.

According to the company's statement, it signed a strategic cooperation agreement with Sinopec's subsidiary South Western Tarim Exploration and Development Co to jointly develop downstream gas markets in five areas: Bayingolin, Kashgar, Hotan, Aksu and Kezhou in southern Xinjiang.