HONG KONG, June 6 (Reuters) - City-gas distributor China Gas Holdings Ltd. has signed an agreement to invest more than 700 million yuan ($87 million) in a gas distribution project in the northern city of Dalian, a source close to the deal said on Tuesday.

The Hong Kong-listed company, which was expected to take a 75 percent stake in the project, had inked a preliminary agreement, the source said.

On Tuesday, China Gas and Dalian gas company signed an agreement related to an assets transfer.

The company did not not disclose any details.

Shares in China Gas were trading 0.83 percent higher at HK$1.22 in late morning trade, after closing more than 5 percent higher on Monday.