NEW YORK, Dec. 13 /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 announced that it has added four more compressed natural gas (CNG) filling stations to its operations, bringing its total to 24 stations. Two stations were acquired in Xi'an City, Shaanxi Province. Another two newly built stations located in the cities of Kaifeng and Xuchang in Henan Province were also put into operation. "With these new stations we have strengthened our position in our home market of Xi'an and also further advanced our geographic expansion into the provinces around Shaanxi, including Henan Province, where we currently have eight CNG stations," said Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, Inc. "Like Xi'an, Kaifeng and Xuchang increasingly rely on CNG as a vehicular fuel due to environmental considerations and the large increase in the cost of gasoline. Kaifeng has roughly 80,000 motor vehicles, of which only 3.6 percent currently use CNG. Xuchang has approximately 50,000 motor vehicles, of which only 2.6 percent currently use CNG. We are very excited about the growth potential of these markets." The four new stations move the Company beyond the previously stated goal of 23 stations by year end 2007. The Company expects all of the new stations to gradually increase sales to reach the Company's existing average sales of 15,000 cm/day per station. However, due to the difficulty of predicting the exact pace of the sales ramp of the new stations, the Company is not adjusting its guidance for 2007, which stands at revenue of $33.1 million and net income of $9.3 million. 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. CHNG 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 In the U.S.: Ashley Ammon MacFarlane or Bill Zima Integrated Corporate Relations 203-682-8200 In Asia: Xuyang Zhang Integrated Corporate Relations, Inc. +86 10 8523 3087 DATASOURCE: China Natural Gas, Inc. CONTACT: In the U.S., Ashley Ammon MacFarlane, or Bill Zima, +1-203-682-8200; In Asia, Xuyang Zhang, +86 10 8523 3087, all of Integrated Corporate Relations, for China Natural Gas, Inc. Web site: http://www.naturalgaschina.com/

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