NEW YORK, May 26 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CANL) ("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 its project with Xi'an International Business Port ("the Port") has been awarded an exclusive "green card", which qualifies the Port project for various preferential policies. The green card's advantages include favorable pricing on land purchase, discounted bank loans, preferred financing rights, and substantial logistical support from Xi'an's Transportation, Telecommunication and Utility Departments. The Port is intended to become one of the largest logistic and business hubs connecting Western and Eastern China, as well as transiting and distributing inland products. It is one of the major projects in the 11th 5-year-plan of Shaanxi province, and is also listed as one of the major projects of the national 11th 5-year-plan by National Committee of Development and Reform. Covering an area of approximately 8 square kilometers, the Port was recently chosen as one of 2009's key construction projects by the Committee of Development and Reform of Xi'an and is expected to receive government investment of approximately RMB9.8 billion (US $1.4 billion). Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, commented, "We are very proud that China Natural Gas was selected as a strategic partner for Xi'an International Port for the installation and construction of natural gas delivery systems, as well as natural gas filling stations in the areas. This multi-dimensional project, which covers industrial, commercial and residential users, should further strengthen our government relationships and our reputation in the city of Xi'an. We are delighted to be awarded the green card for the Xi'an International Port Project. We believe our leading market position in Xi'an and proven capabilities of safely executing natural gas projects through various successful projects over the past years enabled us to win this green card award. The green card demonstrates Xi'an local government's commitment to improve energy efficiency and expand natural gas application, and as a market leader, we feel confident about our attractive business opportunities and our ability to deliver sustained solid financial performance in the years ahead." About China Natural Gas, Inc. China Natural Gas, Inc., ("CANL"), is the first China-based natural gas retailing company publicly traded in the U.S. The Company owns and operates a network of CNG filling stations as well as a 120-kilometer compressed natural gas pipeline in Xi'an, a fast growing Chinese city with population of 8.5 million and "gateway" to China's vast Western regions. CANL retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. It is estimated that there are already 5,000 buses and 20,000 taxis using CNG in Xi'an. Safe Harbor Statement: This press release may contain forward-looking statements. 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, including the progress of construction and development activities, fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies. DATASOURCE: China Natural Gas, Inc. CONTACT: Michael Tieu of ICR, Inc., +86-10-6599-7960 Web Site: http://www.naturalgaschina.com/

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