China Natural Gas Announces Agreement with Xi'an International Port
Administrative Committee
NEW YORK, April 8, 2008 /PRNewswire-FirstCall/ -- China Natural Gas, Inc.
(OTC Bulletin Board: CHNG), one of the leading providers 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 has
entered into an agreement with the Xi'an Internal Port Administrative
Committee ("Committee") to participate in the development of both Xi'an
International Port District and Baliu Ecological Park.
Under this agreement, China Natural Gas will conduct the installation and
construction of the natural gas delivery systems for the sites, as well as
will construct natural gas filling stations in the planning areas around the
locations. The Committee will grant the Company favorable pricing on any land
to be purchased for the project and will provide necessary assistance to
ensure smooth progress of the Company's projects.
The multi-year project is estimated to involve the development of 35
square kilometers (approximately 13.5 square miles) and to be commenced by the
end of 2008. The Company expects to invest approximately $30 million over the
next several years based on the Committee's planning schedule, which it plans
to fund mainly with internal cash flow.
"We are pleased to be selected as the partner in the development of the
Xi'an International Port and Baliu Ecological Park. We believe the project
will further solidify our leading position in the Xi'an City. With a growing
awareness of the benefits of natural gas among provincial and local
governments, we believe we are well positioned to pursue similar opportunities
in the future," stated Mr. Qinan Ji, CEO and Chairman of the Board of China
Natural Gas, Inc.
About Xi'an International Port District
Xi'an International Port is a major construction project listed in the
11th Five-Year plans of both Shaanxi Province and the National Development and
Reform Commission. With a planned area of 7.68 square kilometers and total
investment of RMB 9.8 billion, the Port's mission is to establish an inland
transfer and logistics center, then to develop it into the logistics and
commerce hub linking eastern and western parts of China.
About Baliu Ecological Park
Baliu Ecological Park, begun in 2002, is a joint effort by the governments
of Baqiao District, Xi'an City and Shaanxi Province to develop the Province's
ecological industry. Located 17 kilometers from downtown Xi'an, Baliu
Ecological Park includes tourist attractions and residential and commercial
areas, all of which are being developed based on sustainable ecological
standards.
About China Natural Gas, Inc.
China Natural Gas, Inc., ("CHNG"), is the first China-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 in Xi'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 of China. 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 in Xi'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 progress of construction and
development activities, fluctuation of natural gas prices, the availability of
natural gas supplies, changes in governmental regulations and/or economic
policies.
SOURCE China Natural Gas, Inc.
U.S.: Ashley Ammon MacFarlane or Wei-Jung Yang of Integrated Corporate
Relations for China Natural Gas, +1-203-682-8200; Asia: Dan Joseph of
Integrated Corporate Relations, Inc. for China Natural Gas, +86-10-8523-3087
