NEW YORK, Dec. 8 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today commented publicly on the growth opportunities in Asia's CNG market. Comments follow published data from Asia NGV Communications, an authoritative journal that publishes research about CNG penetration in Asia's developing nations. Mr. Qin'an Ji, the Chairman and CEO of China Natural Gas, stated, "In October of 2008, Asia NGV Communications published an article entitled 'Asia's CNG modified vehicles market: cost and security issues.' The article provided timely statistics about the CNG market in Thailand, where preferential policies for vehicular CNG conversions could drive CNG consumption to replace 140 million liters of gasoline per year by 2012. The report also highlighted opportunities in other emerging markets like the Philippines, Malaysia, Bangladesh, Pakistan, Iran, and Indonesia, where there are a variety of policies to encourage vehicular CNG usage. Importantly for us, these findings coincide with China's national policies to stimulate the CNG market, and we intend to capitalize on these opportunities both inside and outside of China." We also believe that China's shift to natural gas vehicles is already picking up the pace as a result of recent government initiatives, including the recently announced gasoline and diesel fuel tax which will begin in 2009," Mr. Ji added. In June 2008, China's National Development and Reform Commission ("NDRC") announced a 16 percent and 18 percent increase in China's gasoline and diesel retail prices, respectively, while the price of natural gas and liquefied petroleum gas was left unchanged. Starting on January 1, 2009, China will raise gasoline tax from 0.2 yuan to 1.0 yuan, and that for diesel from 0.1 yuan to 0.8 yuan, according the fuel tax reform announced on December 5, 2008 by the NDRC. Mr. Ji concluded, "The growth of CNG market is evidenced by the momentum we see in our home market of Xi'an. As one of the 12 cities chosen by Central Government for the CNG Auto pilot program, the Xi'an Municipal Government introduced several policies, including a 30% reduction in sales tax for the auto makers producing low-pollution/emission cars in order to encourage more conversion to CNG vehicles. We believe we are well positioned to capitalize on this growing market due to our proven operating history and our presence in Xi'an." 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 8.5 million and is the "gateway" to the broad Western regions of China. CHNG currently retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts 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 contains forward-looking statements regarding revenue and net income growth and our LNG processing and distribution plant. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management; are not guarantees of future performance; are difficult to predict 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 fluctuation of natural gas prices, demand for natural gas, the availability of natural gas supplies, changes in governmental regulations and/or economic policies, civil unrest, weather and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, CHNG undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. CONTACT ICR, Inc. Ashley Ammon (US) 203-682-8200 Wei-Jung Yang (China) +86 8523 3088 DATASOURCE: China Natural Gas, Inc. CONTACT: Ashley Ammon, +1-203-682-8200, ; or Wei-Jung Yang, +86 8523 3088, , both of ICR, Inc. Web Site: http://www.naturalgaschina.com/

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