NEW YORK, April 8, 2008 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC:CHNG) (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. DATASOURCE: China Natural Gas, Inc. CONTACT: 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 Web site: http://www.naturalgaschina.com/

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