China Natural Gas, Inc. Announces Construction Approval of One CNG Compressor Station and Six Fueling Stations in Henan Province

XIAN, China, March 31 /PRNewswire-Asia/ -- China Natural Gas, Inc. (Nasdaq: CHNG), a leading natural gas operator of compressed natural gas (CNG) fueling and pipeline natural gas (PNG) services in China, today announced that its joint venture with CNPC Kunlun Natural Gas Co. has received local government approval to build one CNG compressor station and six fueling stations in Pingdingshan City, Henan Province.

According to the local government approval document, the joint venture, Henan CNPC Kunlun Xilan Compressed Natural Gas Co., Ltd., will build one CNG compressor station and two fueling stations in Ye County, Pingdingshan City, two fueling stations in Baofeng County, Pingdingshan City, and two fueling stations in Wugang County, Pingdingshan City. The development marks the formal launch of the joint venture between China Natural Gas, Inc. and CNPC in this region.

Pingdingshan City and the three municipalities under its administration are located in the central and western regions of Henan Province. Baofeng County is an important transportation junction in the province and also a political, economic, cultural center. Located southwest of Pingdingshan City and known as the rock salt capital of China, Ye County is a major salt and grain production base in the country. Wugang County is a modern industrial and tourist destination in central Henan Province.

Mr. Qinan Ji, Chairman and CEO of China Natural Gas, Inc. commented: "We are very pleased to make this announcement that our joint venture with CNPC is progressing well and has received construction permit of one CNG compressor and six fueling stations in Pingdingshan City in Henan Province. CNPC Kunlun has broad market coverage and strong gas supply channels. By leveraging the existing pipeline and supply networks of our business partner, CNPC, we will be able to fully utilize our competitive advantages in strategic management, marketing development and business operations to further expand our market and ultimately generate better returns for our investors."

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 fuelling stations in Henan Province. China Natural Gas' four primary business lines include: (1) the distribution and sale of CNG through Company-owned CNG fuelling 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 fuelling 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.