China Natural Gas Comments on CNG Opportunities Following Release of Market Research
08 Dezember 2008 - 3:00PM
PR Newswire (US)
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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