China Natural Gas Signs Cooperation Agreement with CNPC Kunlun
09 Juli 2009 - 2:30PM
PR Newswire (US)
- Establishing Joint Venture Company for Compressing and
Distributing CNG - NEW YORK, July 9 /PRNewswire-FirstCall/ -- China
Natural Gas, Inc. ("China Natural Gas" or the "Company")
(NASDAQ:CHNG), a leading provider of compressed natural gas (CNG)
for vehicular fuel and pipeline natural gas for industrial,
commercial and residential use in Xi'an, China, today announced
that on July 6, 2009, the Company's variable interest entity Xi'an
Xilan Natural Gas Co., Ltd. ("Xilan") has signed a Strategic
Cooperation Framework Agreement (the "Agreement") with China
National Petroleum Corporation Kunlun Natural Gas Co., Ltd. ("CNPC
Kunlun"), a wholly owned subsidiary of China National Petroleum
Corporation ("CNPC") and the largest supplier of CNG in China.
Under the Agreement, Xilan and CNPC Kunlun will create a joint
venture company (the "JV") dedicated to the processing and
distribution of CNG throughout China. The JV will build and operate
CNG compressor stations, as well as the fueling stations that the
CNG is supplied to, in cities along the natural gas pipelines of
CNPC. This "mother-son CNG stations" program is planned to be
established in 20 cities throughout China along CNPC's existing
natural gas pipelines during the initial two years from the date of
the Agreement. CNPC Kunlun will hold 51% ownership of the JV, and
Xilan will hold 49% ownership of the JV. "We are very excited about
this cooperation agreement with such a leading supplier of CNG as
CNPC Kunlun," commented Mr. Qinan Ji, China Natural Gas's CEO and
Chairman of the Board. "The joint venture will take full advantage
of each of CNPC Kunlun and our own complementary strengths, and
allow us to explore and develop China's compressed natural gas
market together. CNPC Kunlun's broad market coverage and
well-established supply channels combined with China Natural Gas's
strong market placement and extensive experience in the
development, strategizing, and management of natural gas operations
will allow us to penetrate the market more easily and establish a
strong presence as a supplier and distributor of CNG in China. We
are confident that this joint venture will mutually benefit both
companies." Additional information on this joint venture can be
found in the Company's filing with the SEC. About China National
Petroleum Corporation Kunlun Natural Gas Co., Ltd. CNPC Kunlun is
an affiliate of CNPC, a state-owned fuel-producing corporation and
the largest integrated oil and gas company in China. CNPC Kunlun is
designated by CNPC to specialize in vehicular CNG businesses. It is
the largest supplier of CNG in China, with an established presence
in 18 provinces and over 70 cities throughout the country. About
China Natural Gas, Inc. The Company transports, distributes and
sells natural gas to commercial, industrial and residential
customers through its natural gas pipeline networks in China's
Xi'an area, including Lantian County and the districts of Lintong
and Baqiao, in Shaanxi Province. The Company owns approximately 120
km of high pressure pipelines in Xi'an, Shaanxi Province and, as of
March 31, 2009, operates 23 CNG fuelling stations in Shaanxi
Province and 12 CNG fuelling stations in Henan Province. The
Company's four primary business lines include: (1) the distribution
and sale of CNG through Company-owned/leased CNG fuelling stations
for hybrid (natural gas/gasoline) powered vehicles; (2) the
installation, distribution and sale of piped natural gas to
residential, commercial and industrial customers through
Company-owned pipelines; (3) the distribution and sale of gasoline
through Company-owned/leased CNG fuelling stations for hybrid
(natural gas/gasoline) powered vehicles; and (4) the conversion of
gasoline-fuelled vehicles to hybrid (natural gas/gasoline) powered
vehicles through its auto conversion division. SAFE HARBOR:
FORWARD-LOOKING STATEMENTS This press release includes statements
that may constitute forward-looking statements made pursuant to the
safe harbor provision of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
China Natural Gas, Inc. may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about the Company's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to, risks outlined in the Company's
filings with the U.S. Securities and Exchange Commission, including
its registration statements on Forms S-1 and S-3, in each case as
amended. The Company does not undertake any obligation to update
any forward-looking statement, except as required under applicable
law. This release is not an offer of securities for sale in the
United States. Securities may not be offered or sold in the United
States absent registration or an exemption from registration. Any
public offering of securities to be made in the United States will
be made by means of a prospectus that may be obtained from the
issuer or selling security holder and that will contain detailed
information about the company and management, as well as financial
statements. DATASOURCE: China Natural Gas, Inc. CONTACT: Michael
Tieu of ICR, Inc., +86-10-6599-7960, Web Site:
http://www.naturalgaschina.com/
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