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CNG Completes Construction of LNG Project Phase I

Source: 6/3/2010, Location: Asia

China Natural Gas, Inc., 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 that as of today, installation of major domestic and imported equipment including the refrigerator, refrigerant compressor, BOG compressor, air recirculation compressor, nitrogen generator, dehydration equipment, ammonia generator, and cryogen pump is 80% completed. The Company eagerly awaits the completion of Phase I of the LNG project and is literally counting down the days until the plant is finished. The Company remains confident that the LNG plant will be completed and a test run conducted by June 30, 2010.

Mr. Qinan Ji, Chairman and CEO of China Natural Gas, commented: "The construction of the Company's Jingbian liquefied natural gas plant is approaching completion and marks a new chapter in the Company's development. I have recently inspected the construction site and I was truly impressed by the effort and spirit driving toward facility completion. With the development of LNG application technologies, LNG is bound to be used more and more widely as a key energy source in the transportation sector, especially in the marine and public transportation markets."

Mr. Ji continued, "It is a common belief in the world that the application of liquefied natural gas is a revolution for the modern natural gas industry. The eventual completion of the Company's LNG plant will stand as a new driving factor of revenue but also conforms to the compelling need for energy structure optimization and the beginning of a low-carbon energy economy. We sincerely appreciate the longstanding support by all shareholders and will also expedite the application of Phase II and Phase III of the LNG project, which will benefit the shareholders as we achieve stronger growth in our future business as the result of the LNG facility coming online."

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