China Classification Society Visits China Natural Gas Headquarters About Liquefied Natural Gas Applications

XI'AN, China, May 12 /PRNewswire-Asia/ -- China Natural Gas, Inc. ("China Natural Gas" or the "Company") (Nasdaq: 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 Mr. Xiaoping Tian, Vice President of China Classification Society ("CCS"), and Mr. Zhigang Wang, general manager of CCS Wuhan Division, visited China Natural Gas headquarters in Xi'an this week and discussed in detail with Chairman Qinan Ji about the application of liquefied natural gas ("LNG") on vessels in the Yangtze River. Mr. Tian and Mr. Wang highly appraised the Company's breakthrough initiatives in this field.

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.

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 the Yangtze River.

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."

About China Natural Gas, Inc.

China Natural Gas (http://www.naturalgaschina.com ) 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 24 CNG fuelling 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.

SAFE HARBOR: 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 goals of the JV with CNPC and its 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 registration statements on Forms S-1 and S-3, in each case as amended. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements

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:

RedChip Companies, Inc.

Alex Nachman

Tel: +1-800-733-2447 x118

Email: alex@redchip.com

Web: http://www.RedChip.com

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