China Natural Gas Announces Completion Ceremony for Successful Trial Operation of Its Jingbian Liquefied Natural Gas Facility

XI'AN, China, July 18, 2011 /PRNewswire-Asia/ -- China Natural Gas, Inc. ("China Natural Gas" or the "Company") (NASDAQ GM: 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, announced today that it successfully completed trial operation of its Jingbian liquefied natural gas ("LNG") plant on July 16, 2011 and has commenced production.

Mr. Qin'an Ji, Chairman and CEO of China Natural Gas, commented, "It is with extraordinary pride that we happily announce the completion of the trial operation of the Company's Jingbian liquefied natural gas plant and the official commencement of production. As a provincial-, municipal- and county-level key project, the term of this Jingbian plant project lasted 1,400 days as of today. I am truly delighted to share this achievement with all of our shareholders. The Company marked this accomplishment with a completion ceremony held at the plant on July 16, 2011, which heralds a new stage in its corporate history."

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 26 CNG fueling 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.

Forward-looking Statements

Certain statements set forth in this press release contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, our management as well as estimates and assumptions made by our management. Such statements reflect the current view of our management with respect to future events and are subject to risks, uncertainties, assumptions and other factors as they relate to our industry, our operations and results of operations, plans for future facilities, capital-expenditure plans and any businesses that we may acquire. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the U.S. federal securities laws, we do not intend to update any of the forward-looking statements to conform them to actual results.

SOURCE China Natural Gas, Inc.