China Natural Gas Adds Three CNG Filling Stations

"Today's announcement marks a major step in our CNG filling station network expansion as we enter into two new markets in theShaanxi Province. As one of the first natural gas suppliers to enter Tongchuan City and Yan'an City, we expect to continue to capitalize on the demand for compressed natural gas from a growing population of vehicle owners. We estimate there are approximately 60,000 and 70,000 vehicles in Tongchuan City and Yan'an City, respectively, of which only one percent are currently using compressed natural gas. Vehicles powered by gasoline can be readily converted to CNG/gasoline hybrid at our auto conversion division at very low cost. With soaring crude oil prices and the recent increase in the retail price of gasoline inChina, we believe we are well positioned to capture this market opportunity," stated Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, Inc.

About China Natural Gas, Inc.

China Natural Gas, Inc., ("CHNG"), is the firstChina-based natural gas retailing company publicly traded in the U.S. It currently owns and operates a network of CNG retail filling stations as well as a 120 kilometer long compressed natural gas pipeline inXi'an, China.Xi'an is a fast growing Chinese city supported by a population of approximately eight million and is the "gateway" to the broad Western regions ofChina. CHNG has three business segments: retail natural gas at company-owned filling stations, end user delivery of natural gas services to residential, commercial and industrial customers, and conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. Currently it is estimated that there are 5,000 buses and 20,000 taxis using CNG inXi'an.

This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies and our ability to penetrate the new markets.

    CONTACT
    In the U.S.:
    Ashley Ammon MacFarlane or Wei-Jung Yang
    Integrated Corporate Relations
    203-682-8200

    In Asia:
    Dan Joseph
    Integrated Corporate Relations, Inc.
    +86 10 8523 3087

SOURCE China Natural Gas, Inc.

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Copyright © 2008, NewsBlaze, Daily News

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