PetroChina Co Ltd will open its pipelines to meet demand from the oil industry's downstream businesses in Xinjiang Uygur autonomous region, the first of a series of moves designed to help develop the northwestern region's petrochemical industry.

"We will supply whatever (petrochemical) raw materials that are required (by downstream businesses)," Shen Diancheng, vice-president of PetroChina, said at a conference on promoting Xinjiang Kuitun-Dushanzi Economic and Technological Development Zone.

The zone, established in July in the city of Kuitun, would host a cluster of petrochemical companies and encourage the growth of Xinjiang's petroleum industry, said Kuresh Mekhsut, vice-chairman of Xinjiang Uygur autonomous region government. "We plan to reach the goal in three years," he said.

Shen promised to give PetroChina's major clients in the zone "preferential policies" on raw material prices. "If necessary, we would make our pipelines conveying raw materials connect with them," he added.

PetroChina's subsidiaries in Xinjiang have already signed contracts with the development zone on the supply of petrochemical raw materials.

Businesses in the zone have benefited from the deal as it cuts raw material costs.

Changji-based Xinjiang Blue Ridge Tunhe Chemical Industry Co Ltd, a company owned by Blue Ridge Capital China which makes chemical materials, had received a 5 percent discount on its key raw materials from PetroChina, said Shen.

One of the company's subsidiaries in the development zone started the production of a special plastic used for heat insulation in March.

"The discount was meant to encourage the development of downstream companies," said Li Peng, CEO and president of the company.