In Shaanxi Province, CHNG operates 28 compressed natural gas fueling stations, while it operates 12 fueling stations in Henan Province. CHNG also converts automobiles from gasoline-fueled vehicles to natural gas (or hybrid) powered vehicles to lessen their environmental impact.
The problem of automobile-inflicted environmental damage is especially acute in China, where car sales have been rising by close to 80 percent a year, creating huge traffic jams and contributing to some of the worlds worst air pollution, according to the New York Times. China has a serious pollution problem, and natural gas companies like CHNG are developing solutions to counter these circumstances.
China Natural Gas is also progressing into the liquefied natural gas (LNG) market. LNG is natural gas that has been chilled to liquid form, reducing it to one-six-hundredth of its original volume at -161o C (-259o F) for transportation by ship or truck to destinations not connected by pipeline. On arrival, it is turned back into gas for distribution to power plants, factories, and households.
The company is nearing completion of its own LNG production facility in Jingbian, and it announced a successful single-machine test run at the beginning of July. Management has expressed that the plant will begin commercial production in the second half of the year.
On August 3rd, 2010, the first successful LNG-powered ship navigation was completed in Wuhan by a vessel modified by China Natural Gas. The 300-ton tugboat, which previously ran solely on diesel fuel, now consumes a mix of 30% diesel and 70% natural gas. This is a significant breakthrough not only for the maritime transportation industry but for automobiles as well, as LNG can be used for both applications. The LNG trade is transforming global natural gas markets. An International Herald Tribune article on LNG states, The government forecasts LNG demand will rise 31 percent to 10.5 million tons by the end of 2010 and double by the end of the next decade.
On August 13, 2010, China Natural Gas announced its second quarter financial results. Second quarter revenues were up 1.9% from last year to $21.1 million, while net income for the quarter increased 18.1% year-over-year to $4.6 million. With international trade in China growing rapidly and pressure increasing to reduce the nations dependence on polluting, petroleum-based fuels, China Natural Gas is well-positioned to ride the coming boom in the market for this energy-saving and cost-efficient fuel.
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