China Natural Gas Announces Agreement with Xi'an International Port Administrative Committee
08 April 2008 - 10:29PM
PR Newswire (US)
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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