China Natural Gas Announces Successful Completion of Single Machine Test Run and Ignition Ceremony of Its Jingbian LNG Plant

China Natural Gas, Inc. , 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, announced today that it successfully completed the single-machine test run and ignition ceremony of its Jingbian liquefied natural gas (LNG) plant on June 30, 2010.

Mr. Qinan Ji, Chairman and CEO of China Natural Gas, commented, “It is with extraordinary pride that we happily announce the completion of the single-machine test run and ignition ceremony of the Company’s Jingbian liquefied natural gas plant.

As a county, city and provincial-level key project, the plant endured once-in-a-century snowstorm, the May 12 earthquake, 2008 financial crisis and lasted 1,015 days to complete the single machine test run and ignition.

I am truly grateful and delighted to share this achievement with all our investors.”

The Company recognized the accomplishment with an ignition ceremony at the plant, which marks a major milestone in the Company’s history and will soon activate an important asset in the future results of the Company’s business plan.

The plant is the only LNG plant in Shaanxi Province and one of the largest LNG plants in China.

The Company anticipates that the LNG plant will make a significant contribution to its business model by the end of the fiscal year 2010.

With the successful completion of the LNG plant single-machine test run and ignition, the Company is about to build its own LNG fueling stations, which will further the Company’s strategic vision of an integrated LNG operation that covers production, distribution and marketing.

The Company believes this strategy will place it in a highly advantageous position going forward in the competitive natural gas marketplace.

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Source: naturalgaschina, July 5, 2010;