Clean Energy China Stock Pick - CHNG
Based in the city of Xian in China ’s north-central province of Shaanxi , China Natural Gas distributes natural gas (to approximately 50,000 households, as well as commercial buildings) and compressed natural gas (CNG) (to CNG wholesales and retail automobile filling stations). Recently CHNG has introduced its own network of retail filling stations to sell CNG directly to consumers—by the end of 2006, CHNG operated 17 filling stations in or near Xian. The company also owns a 70-mile high pressure gas pipeline, which connects CHNG’s distribution network to the government-owned high-pressure pipeline serving the province. In 2007, CHNG plans to construct its own liquid natural gas plant, which will allow the company to expand the geographic market it serves. CHNG came public in the US via a reverse merger in December 2005. Although CNG currently represents only about three percent of China ’s energy consumption, it is becoming an increasingly important source of fuel in the PRC. CNG...