China Natural Gas Announces Exclusive Agreement with Xi'an Baqiao Science and Technology Industrial Park
18 Februar 2009 - 3:00PM
PR Newswire (US)
NEW YORK, Feb. 18 /PRNewswire-FirstCall/ -- China Natural Gas, Inc.
(OTC 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 management committee of Xi'an Baqiao Science and
Technology Industrial Park (the "Park") to be the exclusive
provider of natural gas services for the Park's Petrochemical Zone.
Under this agreement, China Natural Gas, Inc. will be responsible
for the installation and construction of the natural gas delivery
systems for the Petrochemical Zone and will commence delivery of
natural gas in the third quarter of 2009. The Company will also
build a CNG station in the Petrochemical Zone, bringing the number
of stations operated by the Company to 36. Xi'an Baqiao Science and
Technology Industrial Park, located in the east of Xi'an and
covering an area of 9 square kilometers (3.5 square miles), is a
transportation hub for Xi'an to connect with eastern China. It is a
provincial-level development project approved by the government of
Shaanxi province in 2002, and many large industrial companies have
established their presence in the Petrochemical Zone in the Park
since, including Shaanxi Yanchang Petroleum Group and Shaanxi
Wuzhou Mining Co. Ltd. Mr. Qinan Ji, CEO and Chairman of the Board
of China Natural Gas, Inc., stated that "We are pleased to be the
exclusive provider of natural gas services to the industrial
customers in the Park's Petrochemical Zone. This again demonstrates
our leading position in Shaanxi province. With a potential addition
of four large industrial customers, we estimate the initial demand
could reach 20 million cubic meters in the third and fourth
quarters of 2009, generating an additional revenue of approximately
$6 million." 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 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 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. CONTACT ICR, Inc. Ashley Ammon (U.S.) +1 203 682
8200 Wei-Jung Yang (China) +86 10 6599 7968 China Natural Gas, Inc.
Richard P. Wu, CFO (China) +86 2988 327 391 Ext 903 DATASOURCE:
China Natural Gas, Inc. CONTACT: Ashley Ammon, U.S.,
+1-203-682-8200; or Wei-Jung Yang, China, +86 10 6599 7968, both of
ICR, Inc.; or Richard P. Wu, CFO, China Natural Gas, Inc., China,
+86 2988 327 391 Ext 903, Web Site: http://www.naturalgaschina.com/
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