Continues Geographic Expansion in China NEW YORK, Oct. 9 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC:CHNG) (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 provided an update on its retail CNG station business. Mr. Qinan Ji, Chairman and CEO of China Natural Gas, stated, "As we expected, we had 20 CNG filling stations up and running in the third quarter of 2007. The volume of CNG sold at each of our three newest stations is averaging 12,000 cubic meters per day, which is on track to reach our current average daily sales volume of 15,000 cubic meters per station. We also continued our geographic expansion in the third quarter, as two of our newest stations are located in the city of Zhengzhou in the Henan Province. Like Xi'an, Zhengzhou is a city which increasingly relies on CNG as a vehicular fuel. Zhengzhou has roughly eight million inhabitants and 900,000 motor vehicles, of which only seven percent currently use CNG. We consider cities like Zhengzhou to be compelling new market opportunities for us and we look forward to increasing our presence both in and outside of Xi'an as we continue to expand our retail CNG station network." About China Natural Gas, Inc. China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas company publicly traded in the US. It currently owns and operates a 120 kilometer long compressed natural gas pipeline in Xi'an, China, a fast growing Chinese city supported by a population of approximately eight million and is the "gateway" to the broad Western regions of China. China Natural Gas has three profitable business segments: end user delivery of natural gas services to residential, commercial and industrial customers; wholesale natural gas to retail natural gas filling stations; and retail natural gas at company-owned natural gas filling stations. The city of Xi'an has approximately 20,000 Taxis, 3,000 buses and 2,000 special purpose vehicles that are powered by compressed natural gas. 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 fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies. CONTACT Integrated Corporate Relations In the U.S.: Ashley Ammon MacFarlane or Bill Zima 203-682-8200 In Asia: Xuyang Zhang +86 10 8523 3087 China Natural Gas Inc.: 212-786-7372 DATASOURCE: China Natural Gas, Inc. CONTACT: Ashley Ammon MacFarlane or Bill Zima, +1-203-682-8200, of Integrated Corporate Relations in the U.S., or Xuyang Zhang, +86-10-8523-3087, of Integrated Corporate Relations in Asia; or China Natural Gas Inc., +1-212-786-7372 Web site: http://www.naturalgaschina.com/

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