- Company Continues to Anticipate Listing on NASDAQ -

NEW YORK, Feb. 4 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today announced that holders of the Company's 5% Guaranteed Senior Notes due 2014, have agreed to waive the Company's obligation to have shares of common stock listed on the NASDAQ Capital Market, the NASDAQ Global Market or the New York Stock Exchange on or before January 29, 2009, for a period of three months following January 29, 2009.

Mr. Qinan Ji, Chairman and CEO of China Natural Gas, stated, "We are very grateful for the trust and confidence our investors continue to have in our Company. It has been and remains our priority to obtain a listing on the NASDAQ Capital Market. While we have demonstrated consistent strong operating results, we believe that a listing in NASDAQ Capital Market will enhance our corporate profile and allow more investors to participate in our growth story."

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 currently retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts 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 contains forward-looking statements regarding revenue and net income growth and our LNG processing and distribution plant. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management; are not guarantees of future performance; are difficult to predict 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, demand for natural gas, the availability of natural gas supplies, changes in governmental regulations and/or economic policies, civil unrest, weather and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, CHNG undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

    CONTACT

    China Natural Gas, Inc.
    Richard P. Wu, CFO
    (China) +86 2988 327 391 Ext 903
    Richard.wu@naturalgaschina.com

    ICR, Inc.
    Ashley Ammon
    (US) +1 203-682-8200
    Ashley.ammon@icrinc.com

    Wei-Jung Yang
    (China) +86 6599-7968
    Weijung.yang@icrinc.com

SOURCE China Natural Gas, Inc.