Products Profile

China Natural Gas is a supplier of natural gas. The natural gas is sourced and transported through 120 Km of proprietary high pressure gas pipelines which are spurred off of the intrastate transport pipeline owned and operated by the state-owned Shaanxi Natural Gas Company. This pipeline supplies natural gas directly from a gas field in the northern region of the province through to the high pressure pipes that then feed into the citygate "let-down" stations at Hongqing and Lantian County. At HongQing and LanTian the pressure is reduced and transported througn a network of low pressure distribution pipes to supply the residential, commercial and industrial customers in Lantian County, Lintong and Baqiao Districts. The spur also feeds a compressor station at Hongqing where compressed natural gas (CNG) is collected by tankers to supply autogas stations.

CHNG has identified the alternative vehicle fuel market as offering the company the greatest opportunities for profit and growth. Within the next 12 months, CHNG plans to be the leading CNG filling station operator in China's populous greater Xian area. By the end of 2006, CHNG had operated approximately 17 retail CNG filling stations.

In 2007, China Natural Gas plans to move into the processing, distribution and sale of liquefied natural gas (LNG). This product diversification will not only add to the company's profitability, but will also diversify supply and expand CHNG's geographical sales reach..