China Natural Gas Adds Two Additional Natural Gas Filling Stations

NEW YORK--China Natural Gas, Inc., (OTCBB: CHNG; website: www.naturalgaschina.com) the first China-based natural gas public company traded in the U.S. capital market, today announced that it has completed acquisition of two additional retail compressed natural gas filling stations located in the city of Xi’An, Shaanxi province. The two acquisitions bring the total number of operating company-owned retail filling stations to 11.

Chairman and CEO Qinan Ji said: “We are pleased with the continued progress we are achieving toward completing our targeted goal of 21 company owned natural gas filling stations by the end of 2006. Sales at our existing stations are on target and we continue to experience strong customer demand for cleaner alternative fuel such as compressed natural gas. China Natural Gas is well positioned to deliver strong revenue and earnings growth for 2006 and moving into 2007.”

About China Natural Gas, Inc.

China Natural Gas, Inc., ("CHNG"), a Delaware company, is the first China based US public natural gas services provider that owns and operates a 120 kilometer long compressed natural gas pipeline in China's Xi'An area, a fast growing Chinese city supported by a population of approximately 8 million and is the "gateway" to the broad Western regions of China. CHNG has three profitable business segments: end user delivery of natural gas services to residential, commercial and industrial customers; wholesale natural gas to retail natural gas filling stations; and retail natural gas at company-owned natural gas filling stations. The city of Xi'An has approximately 20,000 Taxis, 3,000 buses and 2,000 special purpose vehicles that are powered by compressed natural gas.