China, Beijing

Sinoenergy Corporation has announced the opening of a new retail compressed natural gas (CNG) filling station and completion of construction of another new retail CNG filling station. The newly opened retail CNG filling station, Jianxilu Station, is located in the city of Ping Ding Shan, Henan Province. It began to sell CNG for use in CNG powered vehicles late last month. Jianxilu Station is the first CNG filling station in Ping Ding Shan. The newly constructed Dawulu Station, also in Ping Ding Shan, is undergoing final equipment testing and is expected to commence operations later this month.

Ping Ding Shan city currently has over 136,000 automobile vehicles, of which about 600 vehicles are buses and 2,200 vehicles are taxis. More than 100 of the taxis have so far been converted to use CNG. Sinoenergy anticipates that more than 100 buses will run on CNG by the end of June 2008, and more than 1,000 taxis will run on CNG by the end of 2008. They anticipate that substantially all of the buses and taxis in Ping Ding Shan and some private automobiles will run on CNG by the end of 2009. To provide fuel for this market, Sinoenergy plans to develop and open five to six retail CNG filling stations in Ping Ding Shan by the end of 2008.

"We are pleased that the Jianxilu station has started operating and construction of the Dawulu station is finished," said Mr. Bo Huang, CEO of Sinoenergy Corporation. "We will continue throughout 2008 to develop and operate a network of retail CNG filling stations in Central and Southeast China."