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| 8-K - China Natural Gas, Inc. | v204346_8k.htm |
Exhibit 99.1
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China
Natural Gas Announces New Supply Agreement with CNPC
XI’AN,
China, December 1, 2010 /PRNewswire-Asia/ — China Natural Gas, Inc. ("China
Natural Gas" or the "Company") (NasdaqGM: 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
it signed a natural gas supply agreement on November 25, 2010 with a
subsidiary of China National Petroleum Corporation (“CNPC”) in Xi’an,
China.
The new
supply agreement between CNPC Changqing Oil Field Branch Company (“CNPC
Changqing”) and Jingbian LNG Company, a wholly owned subsidiary of China Natural
Gas, will provide the Company with a supply of natural gas for its LNG plant in
Jingbian County, Shaanxi Province ("LNG Project"). The Company expects to
complete Phase I of the LNG Project by the end of this year. Under the
terms of the agreement, the Company has the option to purchase up to 500,000
cubic meters of natural gas per day, or 150 million cubic meters per year, of
natural gas from CNPC Changqing at a purchase price of RMB 1.355 per cubic
meter. The agreement is effective through December 31, 2011.
Mr. Qinan
Ji, Chairman and CEO of China Natural Gas, commented, “This supply agreement
will complement our strategic cooperation with CNPC, one of the largest oil and
gas producers in China. As we prepare for commercial production at our new
Jingbian LNG plant, we believe this agreement will provide us with a reliable
supply of natural gas to provide to our customers. We are confident that this
will further strengthen our relationship with CNPC and improve our competitive
edge in the local markets where we operate.”
About
China Natural Gas, Inc.
China
Natural Gas transports and sells natural gas to vehicular fueling terminals, as
well as commercial, industrial, and residential customers through its
distribution networks in China's Shaanxi and Henan Provinces. The Company owns
approximately 120 km of high-pressure pipelines and operates 27 CNG fueling
stations in Shaanxi Province and 12 CNG fueling stations in Henan Province.
China Natural Gas' four primary business lines include: (1) the distribution and
sale of CNG through Company-owned CNG fueling 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 CNG fueling stations for hybrid (natural gas/gasoline)
powered vehicles; and (4) the conversion of gasoline-fueled vehicles to hybrid
(natural gas/gasoline) powered vehicles through its auto conversion
division.
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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. For example, statements
about the future plans and prospects are forward looking and subject to risks.
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 fourth 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 Annual Report on Form 10-K, as amended. The Company
does not undertake any obligation to update any forward-looking statement,
except as required under applicable law.
For more
information, please contact:
China
Natural Gas, Inc.
Jacky
Shi
IR
Director
Tel: +86-29-8832-3325
x922
Cell: +86-139-9287-9998
Email:
yjshi@naturalgaschina.com
Investor
Relations:
Dave
Gentry, U.S.
RedChip
Companies, Inc.
Tel:
+1-800-733-2447, Ext. 104
Email:
info@redchip.com
Jing
Zhang, China
RedChip
Beijing Representative Office
Tel: +86
10-8591-0635
Web:
http://www.RedChip.com
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SOURCE:
China Natural Gas, Inc.