The four new stations move the company beyond the previously stated goal of 23 stations by year-end 2007. The company expects all of the new stations to gradually increase sales to reach the company’s existing average sales of 15,000cm/day per station.
Qinan Ji, CEO and chairman of China Natural Gas, said: With these new stations we have strengthened our position in our home market of Xi’an and also further advanced our geographic expansion into the provinces around Shaanxi, including Henan Province, where we currently have eight compressed natural gas (CNG) stations.
Like Xi’an, Kaifeng and Xuchang increasingly rely on CNG as a vehicular fuel due to environmental considerations and the large increase in the cost of gasoline. Kaifeng has roughly 80,000 motor vehicles, of which only 3.6% currently use CNG. Xuchang has approximately 50,000 motor vehicles, of which only 2.6% currently use CNG. We are very excited about the growth potential of these markets.
