China will raise its natural gas supply to as much as 420 ­billion cubic meters per year by 2020 amid rising demand due to urbanization, a government statement said on Wednesday.

The increased supply will ­cater to the rising demand for natural gas in people's daily lives, schools, nursing homes, home heating, as well as in buses and taxis, according to a statement published on the central government's website.

The supply increase is also driven by the nation's efforts to mitigate air pollution stemming from an over-reliance on coal, the statement said.

To expand natural gas production, investment in gas storage facilities as well as their construction and operation will be open to all market players, the statement said.

Meanwhile, companies will also have the option to issue bonds to raise capital for the construction of storage facilities. The government will offer favorable land policies for ­sto­rage facility projects, the statement said.

China's total consumption of natural gas rose 13.9 percent year-on-year to 167.6 billion cubic meters in 2013, according to a report published on January 15 by the Economic and Technology Research Institute of the China National Petroleum Corp.

The higher consumption led to a 25 percent increase in imports, totaling 53 billion cubic meters last year, 31.6 percent of the total consumption.

Supplies will continue to be tight this year, the report said, predicting that the natural gas consumption would expand 11 percent this year to 186 cubic meters.

China and Russia aim to wrap up a 10-year series of talks about Russian gas supplies before Russian President Vladimir Putin visits China in May, Reuters reported on April 14.