Compressed Natural Gas for China

NEW YORK, April 2, 2008, 2008 /PRNewswire-FirstCall via COMTEX/ -- China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, announced today that it has built two new CNG filling stations in Xi'an City, in the Shaanxi Province of China. The filling stations have all of the government permits they need to operate and are now selling natural gas for CNG powered vehicles. Today's announcement brings the Company's total CNG filling stations in operation to 28.

"We are so pleased to continue our station build out in 2008 as we further enhance our presence in the Shaanxi Province. We believe there is significant opportunity to build out our filling network as more and more drivers and local governments seek the benefits of CNG, which is significantly more affordable and energy efficient than gasoline. In fact, in Xi'an City alone, we estimate there are roughly 700,000 motor vehicles, of which only eight percent are currently using CNG. We are working diligently to capitalize on this market opportunity," stated Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, Inc.

About China Natural Gas, Inc.

China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas retailing company publicly traded in the U.S. It currently owns and operates a network of CNG retail filling stations as well as a 120 kilometer long compressed natural gas pipeline in Xi'an, China. Xi'an is a fast growing Chinese city supported by a population of approximately eight million and is the "gateway" to the broad Western regions of China. CHNG has three business segments: retail natural gas at company-owned filling stations, end user delivery of natural gas services to residential, commercial and industrial customers, and conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. Currently it is estimated that there are 5,000 buses and 20,000 taxis using CNG in Xi'an.

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 fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.