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NewsBot Date: June 28, 2006 05:00:00 AM
CHNG News China Natural Gas Inc. Launches Seventh Company Owned Compressed Natural Gas Station; Expansion Momentum Driven by Strong Demand for Natural Gas as Alternative to Gasoline
NEW YORK--(BUSINESS WIRE)--June 28, 2006--China Natural Gas Inc., (OTCBB: CHNG, website: www.naturalgaschina.com) the first China-based natural gas public company traded in the U.S. capital market, today announced that it has opened the seventh company owned natural gas station in the Xi'An area of Shaanxi Province, China, achieving its second quarter milestone objective.
Escalating gas prices and the governmental clean energy policy promoted in the region is leading to increasing demand for vehicular compressed natural gas. The Company sells on average 20,000 cubic meters of compressed natural gas per station per day to taxis and natural gas powered buses. As an alternative fuel to gasoline, the average price per mile for compressed natural gas is approximately 60% lower than gasoline.
Chairman and CEO Qinan Ji commented: "We're pleased with meeting our projection of growing our natural gas station network to seven by the end of the second quarter, and we will continue to ramp up our network during the second half of the year. Customer demand for compressed natural gas as an alternative fuel to gasoline remains very strong in China, and the performance of our residential retail natural gas service was quite robust during the second quarter. We look forward to reporting our second quarter financial results."
China Natural Gas, Inc., ("CHNG"), a Delaware company, is the first China-based US 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 7 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.
Bodisen Biotech, Inc. (AMEX: BBC) owns 8.6% of China Natural Gas.
Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. 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. There is no assurance that the American Stock Exchange will approve the listing of the company's shares on AMEX.
