China Natural Gas, Inc. Announces Plans to Expand Into Hubei Province With Approvals for Harbor LNG Fueling Stations Construction

XI'AN, China, April 8 /PRNewswire-Asia/ -- China Natural Gas, Inc. (Nasdaq: CHNG), a leading provider of compressed natural gas for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that it has received local government approval from Wuhan City, Yichang City, Xiangfan City and Huangshi City in Hubei Province to build liquefied natural gas (LNG) reserve stations, harbor LNG fueling stations, and inland LNG fueling stations in the region. The development marks the Company's initial endeavors expanding into the natural gas market in Hubei and currently, harbor natural gas fueling stations are an untapped market in China.

According to the approval document of Wuhan Development and Reform Commission, the Company is allowed to build 30 inland LNG fueling stations and 4 harbor LNG fueling stations in Wuhan, the capital city of Hubei province.

According to Yichang Development and Reform Commission, the Company is allowed to build one LNG reserve station, two harbor LNG fueling stations, and seven inland LNG fueling stations.

According to Xiangfan Development and Reform Commission, the Company is allowed to build one LNG reserve station, one harbor LNG fueling station and four inland LNG fueling stations.

According to Huangshi Development and Reform Commission, the Company is allowed to build one LNG reserve station, two harbor LNG fueling stations, and six inland LNG fueling stations.

Hubei Government officials commented in correspondence documents: "Utilization of natural gas satisfies the long-term need of energy conservation and environmental protection. The positive impacts of the LNG utilization include optimizing urban energy structure, easing energy shortages, reducing cost of energy consumption, and augmenting the natural gas coverage in addition to pipelines. LNG also has obvious economic and environmental advantages for transportation applications including buses, freight vehicles and ships. China Natural Gas has advanced LNG technology with safe and reliable applications and a professional service system. This new energy project will benefit the urban economy and socio-economic development."

Mr.Qinan Ji, Chairman and CEO of China Natural Gas, Inc. commented:

"We believe expanding the natural gas usage is a contribution to both global environmental protection and to China's. The Yangtze River runs approximately 2,300 kilometers from Chongqing to Shanghai and crosses seven provinces including Sichuan, Hubei, Hunan, Jiangxi, Anhui, Jiangsu and Shanghai. We plan to build natural gas fueling stations along the Yangtze River to provide service for vessels and extend our business to river transportation, which currently represents a completely untapped market. Utilization of natural gas in vessels solves or alleviates many fundamental environmental problems such as oil-contaminated water; and solving these problems has obvious economic, social, and environmental benefits.

Mr. Ji continued: "The Yangtze River, known as the 'Golden Waterway,' averages 130,000 to 150,000 in ship traffic daily. Xiangfan is an important port city along Hanjiang, a major tributary of Yangtze River, with active water transportation. We believe the harbor fueling stations represent a very promising future despite the diligent efforts required. We believe development of the market as well as the increase of customers will contribute to the Company's sustained growth and to long-term shareholder value."

About China Natural Gas, Inc.

China Natural Gas transports and sells natural gas to vehicular fueling terminals, as well as commercial, industrial and residential customers through its distribution networks in China's Shaanxi and Henan Provinces. The Company owns approximately 120 km of high-pressure pipelines and operates 24 CNG fuelling stations in Shaanxi Province and 12 CNG fueling stations in Henan Province. China Natural Gas' four primary business lines include: (1) the distribution and sale of CNG through Company-owned CNG fueling stations for hybrid (natural gas/gasoline) powered vehicles; (2) the installation, distribution and sale of piped natural gas to residential, commercial and industrial customers through Company-owned pipelines; (3) the distribution and sale of gasoline through Company-owned CNG fueling stations for hybrid (natural gas/gasoline) powered vehicles; and (4) the conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles through its auto conversion division.

SAFE HARBOR: FORWARD-LOOKING STATEMENTS

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. For example, statements about the future plans and goals of the JV with CNPC and its prospects are forward looking and subject to risks. China Natural Gas, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts including statements about the Company's beliefs and expectations are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statements on Forms S-1 and S-3, in each case as amended. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

    For more information, please contact:

    China Natural Gas Inc.
     Jacky Shi
     IR Director
     Tel:   +86-29-8832-3325 x922
     Cell:  +86-139-9287-9998
     Email: [email protected]

    Investor Relations:
    RedChip Companies, Inc.
     Jon Cunningham
     Tel:   +1-800-733-2447 x107
     Email: [email protected]
     Web:   http://www.RedChip.com

SOURCE China Natural Gas, Inc.

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