China Natural Gas Announces Completion of First LNG Fueling Station in Shaanxi Province


China Natural Gas, Inc. (“China Natural Gas” or the “Company”), 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 the Company has completed construction of a liquefied natural gas (LNG) fueling station in Shaanxi Province.

The station will officially begin operations on September 9, 2010 and marks the Company’s first development of an LNG fueling station in China.

The new station, located in Hongqing District, Xi’an, is the first LNG fueling station in Shaanxi Province.

The LNG fueling station has a designed fueling capacity of approximately 50,000 cubic meters per day.

This first station will initially serve as a working model, which will be crucial to showcase the market potential of LNG to future users.

China Natural Gas is also working with renowned truck manufacturers, which the Company believes will accelerate the process of acceptance of LNG fuels into the marketplace.

CEO and Chairman Mr. Qinan Ji remarked, “We are very pleased to share this exciting news. The opening of our first LNG fueling station is a major milestone for our Company that underlines the growing recognition of LNG as a viable clean-energy fuel source for vehicles.

Compared to gasoline and diesel, LNG is a more cost-efficient, environmentally friendly fuel source that can provide significant cost-saving benefits to fueling station operators and consumers.

LNG-powered cars can save consumers more than 40% on fuel costs compared to diesel cars. Furthermore, LNG fueling stations require relatively small initial investments and shorter construction periods, and the cost of converting a car to run on LNG is moderate.”

Mr. Ji continued, “The Chinese government plans to invest approximately $700 billion in alternative energy projects over the next 10 years, and we expect natural gas to be a key component of the national energy strategy.

We will continue to develop our business to capitalize upon new opportunities in China’s rapidly growing natural gas market.”

Energy research and consulting group Wood Mackenzie forecasts that LNG consumption in China could reach as much as 46 million metric tons per year by 2020, up from an earlier estimate of 31 million metric tons.

In the month of June, total LNG purchases in China reached 741,732 tons, representing an increase of 58% compared to the same period a year ago.

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Source: China Natural Gas, September 3, 2010;