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China Natural Gas to Sign Contract for Jingbian

Source: www.gulfoilandgas.com 3/4/2010, Location: Asia

China Natural Gas, Inc., a leading provider of compressed natural gas for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, announced that the Company has signed an installation contract with China Nuclear Industry Fifth Construction Co., Ltd. for its liquefied natural gas (LNG) project to ensure the project be completed by June 30, 2010, which also signifies the commencement of the test run.

According to the contract, China Nuclear Industry Fifth Construction Company will ensure the installation of core processing equipment in the plant as well as related engineering be completed before June 30, 2010 with labor, material, quality, duration, and safety specified in the contract. This will mark the commencement of the test run of Phase I of the LNG project and the prelude of commercial production.

China Natural Gas Chairman and CEO, Qinan Ji said: "We are very pleased to announce this news to investors. The Jingbian LNG project is the first liquefied natural gas plant in Shaanxi approved by the NDRC and Shaanxi Provincial Government. We believe adding the LNG plant into our operations will greatly augment our sustained long-term growth. China Nuclear Industry Fifth Construction Company is recommended by Chemtex, our design and technology contractor. It has very strong and relevant experience as well as qualifications, and previously served customers include DuPont China, Shell China, Sinopec Shanghai Oil and Chemical Ltd., CNOOC, etc."

Upon completion, the LNG project will have production capacity of 500,000 cubic meters per day, or 150 million cubic meters on an annual basis. Liquefied natural gas is widely used in power generation, transportation, metallurgy, ceramics, glassworks and other aspects of the social economy.

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