China Natural Gas, Inc. Subsidiary to Service Second Line of the West-East Natural Gas Pipeline Project

XI'AN, China, April 30 /PRNewswire-Asia/ -- China Natural Gas, Inc. ("China Natural Gas" or the "Company") (Nasdaq: CHNG), a leading provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that the Henan Sanmenxia Development and Reform Commission approved China Natural Gas' wholly owned subsidiary, Lingbao Yuxi Gas Co. ("Lingbao Company"), to service the second line of the West-East Natural Gas Pipeline Project's Sanmenxia Branch Line, which also enabled Lingbao Company to potentially receive an annual natural gas quota of up to 130 million cubic meters upon the completion of the pipeline. In addition, the Henan Lingbao Development and Reform Commission also approved Lingbao Company to build one fueling station in East Chang'an Road in Lingbao.

Mr. Qinan Ji, Chairman and CEO of China Natural Gas, Inc. commented: "The Sanmenxia Branch Line of the second line of the West-East Natural Gas Pipeline Project is included into the 2010 key construction project plans in Henan Province. The second line of West-East Natural Gas Pipeline Project commenced in early 2010 and is expected to complete the construction, inspection, and test-run phases in 2011, with a maximum natural gas quota of 130 million cubic meters allocated to Lingbao Company, serving residential clients in Lingbao and vicinity regions as well as industrial users in Sanmenxia Industrial Park. It has a powerful role in optimizing the energy structure of the Sanmenxia City and improving the environmental conditions. Lingbao Company's undertaking of the Sanmenxia Branch Line project enables CHNG to further develop its natural gas market in Henan Province and to open a new chapter for the company."

Mr. Ji continued: "Currently, there are approximately 30,000 motor vehicles in Lingbao, providing a solid platform for the company's expansion of its natural gas fueling station networks. We will continue to leverage our business operational advantages and focus on building long-term and greater shareholder value."

About China Natural Gas, Inc.

China Natural Gas (http://www.naturalgaschina.com ) 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.
     Alex Nachman
     Tel:   +1-800-733-2447 x118
     Email: [email protected]
     Web:   http://www.RedChip.com

SOURCE China Natural Gas, Inc.