BP has signed a second production-sharing contract (PSC) for shale gas exploration, development and production with China National Petroleum Corp. (CNPC), the U.K.-based company said in a news release.

The PSC covers about 1,000 square kilometers at Rong Chang Bei in the Sichuan Basin. CNPC will be the operator.

The contract follows a shale gas PSC signed by the two companies in March. This contract involved the Neijiang-Dazu Block.

BP called the latest PSC another achievement under the strategic cooperation framework agreement the two companies signed in October 2015. “In addition to unconventional resource exploration and development,” BP said, “the framework agreement covers possible future fuel retailing ventures in China, potential new oil and LNG trading opportunities globally and carbon emissions trading, as well as sharing of knowledge around low carbon energy and management practices.”

China is expected to contribute the most to growth of shale gas production, which is forecast to make up a quarter of the gas produced worldwide by 2035, according to BP’s Energy Outlook.