Sinoenergy stated that 32 compressed natural gas (CNG) stations are in the planning or construction phase and they are expected to be operational, subject to government approvals, by the end of calendar year 2008.
The firm said that government regulations on land used for industrial purposes and a limited number of available government inspectors have delayed the process of obtaining government approvals that are necessary for it to open and operate these stations.
Sinoenergy also noted that the construction of retail CNG filling stations was also slowed by the snowstorm that hit China in early 2008.
Bo Huang, CEO of Sinoenergy, said: We have gained considerable experience in both filling station construction and dealing with local governments which should reduce the time needed to construct stations and obtain government approvals. We have also strengthened our management team to enable us to more effectively manage the development of retail CNG filling stations in diverse locations.
