NEW YORK, Oct. 19, 2006 (PRIMEZONE) -- China Natural Gas, Inc. (OTCBB:CHNG) (http://www.naturalgaschina.com), a leader in China's natural gas industry engaging in the transmission and distribution of natural gas to a diverse base of commercial, industrial, wholesale and residential customers, has entered into a natural gas supply agreement with PetroChina Company Ltd. (NYSE:PTR), China's largest oil and gas company. PetroChina will supply the Company with an annual capacity of 150 million cubic meters of natural gas for the Company's Liquefied Natural Gas (LNG) project.
Mr. Qinan Ji, Chairman and CEO of China Natural Gas, commented, "We are pleased to work with PetroChina, China's largest oil and gas company. This agreement will help secure our long-term gas supply for our planned LNG facility expected in 2007/2008. We are in the process of evaluating several world leaders in the LNG facility industry that have recently visited our planned site in China and have expressed strong interest in bidding on our LNG project. In addition to our existing 15 natural gas retail stations, we are evaluating several other stations while constructing new ones. As a natural gas services provider, our customers continue to see the use of natural gas as a more cost-effective and environmentally friendly fuel and energy alternative."
About China Natural Gas, Inc.
China Natural Gas, Inc. ("CHNG"), a Delaware company, is the first China-based U.S. public natural gas services provider that owns and operates a 120-kilometer-long compressed natural gas pipeline in China's Xi'an area, a fast-growing Chinese city supported by a population of approximately 8 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.
Safe Harbor Statement
Certain forward-looking statements made on this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to the risks described in the company filings with the Securities and Exchange Commission.