May 10 2010, Mr. Xiaoping Tian, Vice President of China Classification Society (‘CCS’), and Mr. Zhigang Wang, general manager of CCS Wuhan Division, visited China Natural Gas headquarter in Xi’an and discussed in detail with Chairman Mr. Qinan Ji about application of liquefied natural gas (‘LNG’) on vessels in Yangtze River. Mr. Tian and Mr. Wang highly appraised the Company’s breakthrough initiatives in this field.

         
                      Mr. Ji meets the Leaders of CCS and CCS Wuhan Division

CCS Wuhan Division acknowledged the harbor fueling stations project as meeting both national and international requirements of energy conservation, environmental protection and building a low-carbon economy. It is critical to implement rigorous experiments about conversions of diesel engine to LNG hybrid and formalize technical standards, and meanwhile enhance market development efforts to plan for and capture the vessel LNG market.

          
                                Both parties had a pleasure conversion

Mr. Tian, Vice President of CCS commented, that with the evident advantages and strength in natural gas operation and distribution, the keen judgment and resolution of management team, China Natural Gas is very well positioned to capitalize on this superior market opportunity. The government will provide full support of this project to facilitate the implementation along Yangtze River.

          
                                   Both parties take photo after meeting

Mr. Ji, Chairman and CEO of China Natural Gas, Inc. commented: “we are very pleased to have executives from CCS and CCS Wuhan Division to visit the Company. The emphasis and support they have shown further enhanced our confidence in this project. Up to date, we are diligently working towards all major conditions of the project and the first experiment vessel is about to go through trial voyage soon. We believe the project will finally reward the Company and the shareholders with strong and sustained long term growth.”