Corporate Presentation

April 2010

2

Table of contents

Section Page

1 About China Gas 3

2 Operational Highlights 1H FY2010 15

3 Financial Highlights 1H FY2010 22

4 FY2010-11 Guidance 27

5 Sector Outlook 29

About China Gas

4

Overview

Principal Business Segments

1. Natural Gas Services Operator: Engages in the investment, operation and management of city gas pipeline infrastructure, distribution of natural gas to residential, industrial and commercial users, and construction and operation of natural gas refilling stations

– Business started in 2002 when China decided to construct the West-East Pipeline

– Operates in 117 city concessions with 30-year monopolistic operating right each

– Possesses a pipeline network of more than 28,990 km serving approximately 4.2 million household users and nearly 30,983 industrial and commercial users

2. LPG Supplier: The only vertically-integrated LPG operator in PRC

– Entered into the LPG industry in September 2008

– Owns 11 LPG receiving terminals, 275,000 m3 of LPG storage capacity, upstream to downstream distribution network in PRC

Strategic cooperation agreement signed with PetroChina in both natural gas and LPG businesses in PRC

55

Natural gasBusiness model

Storage tanks(spherical or cylinder)

Natural gas fields

Assets owned by the Group:

Main pipelines

Branch pipelines

Pressure regulating boxes

Switches

Processing stations

* Customers’ pipelines which are not owned by the Group are within the customers’ premises and are not highlighted in this diagram.

City gate

Industrial users*

Residentialhouseholds*

Commercial users*Car refueling station

National or provincialpipelines

66

Natural gasRevenue model and pricing

2 main sources of revenue

– Gas connection: one-off payment mainly from residential users, less so from industrial and commercial users

– Sale of piped gas: recurring income at tariffs approved by the local governments

Exploration

Wellhead priceTransportation

Transmission tariffsDistribution

Distribution cost + margin

END-USER TARIFF COMPONENTS

Natural gas business operates on a cost-plus pricing model

NDRC Approval Local Price Bureau Approval

77

Natural gasProject development process

Bid & award Construction & development12-18 months

Operation30 years

About 15 - 20 projects under review

Investment criteria include:1. Project IRR > 15% 2. Industrial demand3. Natural gas accessibility

Revenue: Gas connection fees

Projects under development2007: 20 projects2008: 18 projects2009: 47 projects1H FY10: 34 projects

Revenue: Sales of piped gas

Projects in operation2007: 37 sites2008: 50 sites2009: 63 sites1H FY10: 80 sites

China Gas has a strong track record of developing city gas projects on time and on budget

88

Natural gasCurrent project locations

Beijing

Shanghai

Heilongjiang

Jilin

Liaoning

Inner Mongolia

Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Shaanxi

Shanxi

Henan

ShandongHebei

Jiangsu

Anhui

Zhejiang

Fujian

JiangxiHunan

Guangdong TaiwanGuangxi

Hainan

Yunnan

Guizhou

Sichuan

Chongqing

Tianjin

Shaanxi Baoji, Qishan Xian, Yulin

Hebei Cangzhou, Cangzhou Economic Development Zone, Nanpi, Qinghe, Leting, Xinle, Gaocheng, Pingshan, Feng Nan, Neiqiu, Wangdu, Nanbao, Bohai New Area, Hebei Pipeline

Hubei Yichang, Xiaogan, Hanchuan, Yingcheng, Yunmeng, Suizhou, Tianmen, Guangshui, Dangyang, Xiaogan Pipeline, Dangyang Pipeline, Huanggang-Daye pipeline

Hunan Yiyang, Yuanjiang

Guangdong Maoming, Conghua, Meizhou, Yunfu, Shanwei

Guangxi Yuling, Qinzhou, Liuzhou, Fongchenggang, Laibin, Baise, Nanning Dongmeng Development Zone

Chongqing Dianjiang E&P, Yubei District, Dingwang purification, Chongqing Pipeline

Inner Mongolia Hohhot, Wushenqi, Wushenqi Pipeline, Changmeng Pipeline, Baotou, 4 counties, Etoke Banner

Ningxia Zhongwei

Fujian 28 city gas concessions

Jiangsu Pizhou, Yangzhong, Nanjing (Jiang Bei), Xuzhou (Jiawang), Xuzhou (Xinyi), Yangzhou

Anhui Wuhu, Huainan, Shouxian, Suzhou, Wuhuxian, Nanling, Huoshan, Fengtai ， Wuwei

Zhejiang Hangzhou (Xiaoshan), Shaoxing, Taizhou, Jinhua

Liaoning Dalian, Fushun, Jinzhou, Sujiatun(Shenyang), Jinzhou D. Zone, Liaoyang, Gaizhou, Zhuanghe, Linghai, Pulandian

Shandong Dezhou, Qingdao

Tianjin Tianjin Pipeline

Heilongjiang Harbin, Jiamusi, Shuangcheng

Hubei

99

CNG refilling stations

CNG automobile development in the PRC is underpinned by the government’s determination to reduce emission and reliance on oil as the main source of vehicle fuel

China Gas currently owns 72 CNG refilling stations

– With daily capacity in excess of 1,200,000 m3

We aim to construct at least 120 CNG automobile filling stations by 2012

– Annual CNG sales volume is expected to reach 800 million m3

– Projected annual sales of approximately RMB 2.0 billion

1010

LPG

China Gas is the largest and only vertically integrated LPG supplier in the PRC covering retail and wholesale

Our LPG business covers:

– Upstream: Direct supply from refineries of PetroChina (28 refineries with total capacity of 6 million tons) and Sinopec; also import from the Middle East;

– Midstream: 11 receiving terminals, 275,000 m3 LPG storage facilities, fleets of vessels and trucks, and distribution logistics in Guangdong, Guangxi, Fujian, Zhejiang and Jiangsu;

– Downstream: Direct retail of bottled LPG to households.

Our vertically integrated LPG business provides a sustainable gross margin of 17%+

11

Oil Refinery

LPG Receiving Terminal

Class 3 Station

Bottling Station

Residential households

Class 2 Station

Assets owned by the

Group:

LPG vessels

LPG trucks

Trucks sending bottled LPG

Import/Domestic Supply

LPGBusiness model

Class 1 Station

Storage Facilities

Industrial users

Domestic supply

1212

LPGCurrent project locations

Guangdong Nansha Huakai Class I Storage with 50,000-ton terminal and storage capacity of 56,700m3

Shantou Class II Storage with 5,000-ton terminal and storage capacity of 3,020m3

Guangxi Fangcheng Class I Storage with 50,000-ton terminal and storage capacity of 49,000m3

Fujian Fuzhou Hengyuan Class II Storage with 1,000-ton floating pier and storage capacity of 1,700m3

Jingjiang Xiahua Class II Storage with 5,000-ton terminal and storage capacity of 2,020m3

Jiangsu Jingjiang Class I Storage with 50,000-ton terminal and storage capacity of 57,800m3

Zhejiang Haiyan Class I Storage with storage capacity of 4,400m3

Wenzhou Xiaomen Island Class I Storage with 50,000-ton terminal and storage capacity of 97,000m3 ; Leqing Transfer Station with storage capacity of 900m3 ; Yongjia Huadian Class II Storage with 1,000-ton floating pier and storage capacity of 1,000m3

Beijing

Shanghai

Heilongjiang

Jilin

Liaoning

Inner Mongolia

Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Shaanxi

Shanxi

Henan

ShandongHebei

Jiangsu

Anhui

Zhejiang

Fujian

JiangxiHunan

Guangdong TaiwanGuangxi

Hainan

Yunnan

Guizhou

Sichuan

Chongqing

Tianjin

Hubei

Other LPG Assets- 35 Class III stations in the 5 coastal provinces - 96 retail shops- 8 LPG vessels- 450 LPG trucks

1313

Strategic partnerships

China Gas has joint venture with each of GAIL, Oman Oil and SK E&S to leverage on their technical knowhow and experience in their respective expertise

Each of GAIL, Oman Oil, SK E&S and ADB has senior person on the board of China Gas, providing valuable insights and advice from the international and diversified perspectives

Strategic shareholders have partnered and helped China Gas’ growth through the years

CHINA GAS

Management

SINOPEC

Strait Finance

GAIL

Oman Oil

ADB

Oman Fund Public

SK E&S

8.64% 6.30% 10.20% 6.30% 7.13% 4.50% 4.85% 4.98% 47.10%

14

China Gas entered into a strategic cooperation agreement with CNPC Kunlun Natural Gas (a wholly-owned subsidiary of PetroChina)

The two parties will co-operate in the following areas:

— LPG business: China Gas and CNPC Kunlun will jointly use Shanghai Zhongyou as the platform to carry out PRC LPG business; CNPC Kunlun has an annual LPG output of 6m tonnes

— Piped gas: Agreed for non-compete on existing projects. Preference will be given to each other in the development of long-distance pipelines and piped gas, and will jointly bid to secure new piped gas projects in large and medium cities

— Supply of LNG: CNPC Kunlun will give preference to China Gas for LNG supply

— Sharing of human resources, technology and branding

Cooperation agreement with PetroChina

2008 Gas Supply in China

Source: Macquarie Research

Total Annual Supply: 79 billion m3

Imports6%

PetroChina73%

Sinopec12%

CNOOC9%

Operational Highlights 1H FY2010

16

0

200

400

600

800

1000

1200

1400

1600

1800

1H08 1H09 1H10

Coal Gas & Piped LPG

Natural Gas

Natural gasSales volume

Tota

l sal

es v

olum

e (m

illio

n m

3 )

Period Sales Growth – Total

1H10 106.0%

1H09 110.9%

1H08 124.6%

Period Sales Growth – Natural Gas Only

1H10 101.8%

1H09 138.0%

1H08 117.3%66.7

746.8

313.8

380.5

802.3

1,652.5

55.5

145.5

1,507.0

17

Natural gasCustomer breakdown

0

200

400

600

800

1000

1200

1400

1600

1H08 1H09 1H10

CNG Stations

Commercial

Industrial

Residential

Nat

ural

gas

sal

es v

olum

e (m

illio

n m

3 )

44.7

191.135.842.2

105.7

497.1

66.577.5

Sector Sales Volume Growth in 1H10

% of Total Volume

CNG Stations

39.1% 7.2%

Commercial 118.6% 9.6%

Industrial 119.0% 72.2%

Residential 56.2% 11.0%

746.8

313.8

1,507.0

107.8

145.4

1,088.7

165.1

18

Natural gasCustomer data

Customer Growth Organic Acquired1H10

Portfolio TotalChange from

1H091H09

Portfolio Total

Residential 289,262 163,273 4,197,905 23.5% 3,399,100

Industrial 105 4 529 116.8% 244

Commercial 1,752 191 30,454 24.8% 24,402

CNG Stations 7 - 67 34.0% 50

Customer Tariffs (ex-tax) (RMB / m3) 1H10 Change from 1H09 1H09 1H08

Residential 1.84 1.1% 1.82 1.74

Industrial 2.03 4.1% 1.95 1.49

Commercial 2.31 14.4% 2.02 2.05

CNG Stations 2.14 -7.4% 2.31 1.98

19

LPG Operational data

1H10 FY09*

LPG Sales Volume (tons) 435,900 495,155

LPG Average Sales Income per ton (HKD) 4,010 4,589

Operational Location (Cities) 22 17

* The acquisition of the LPG business was completed in September 2008. Therefore, the FY09 figures above do not capture full year performance

20

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1H08 1H09 1H10

CNG for AutomobilesCommercialIndustrialResidential

2,374.7

4,485.0

8,913.0

Other operational data

Natural gas daily consumption

(000

m3 )

18.40%

25.40%28.30%

20

25

30

35

40

45

50

55

1H08 1H09 1H100%

5%

10%

15%

20%

25%

30%

Penetration Rate (%

)

Urb

an P

opul

ation

Co

vere

d (m

)

Urban population covered and penetration rate

379.8

1413.7

291.5 496.5

3,075.5

437.040.7

44.0476.05,963.0

1,437.0

890.0

623.0

292.0

50.9

21

Other operational data

1H10 Change from 1H09 1H09 1H08

Residential Connection Fee (RMB per customer) 2,418 8.5% 2,228 2,368

Total Pipelines (km) 28,990 69.8% 17,073 14,483

Financial Highlights 1H FY2010

23

Financial summaryIncome Statement

HK$ ('000) 1H FY10 % change 1H FY09 (restated) 1H FY08

Turnover 3,937,292 138.7% 1,649,787 877,762

Gas Sales 1,577,112 51.7% 1,039,417 549,941

Connection Fees 559,269 35.4% 412,950 227,027

LPG Sales 1,748,104 - - -

Other 52,807 -73.3% 197,420 100,794

Gross Profit 934,031 68.9% 553,100 271,802

Profit after tax 490,778 338.2% 111,986 74,476

Profit Attributable to Shareholders 431,778 484.8% 73,836 64,711

Basic EPS (HK Cents) 12.95 483.3% 2.22 2.05

Gross Margin – Gas Sales 22.9% n/a 19.3% 13.6%

Gross Margin – Connection Fees 74.8% n/a 76.5% 80.0%

Gross Margin – LPG Sales 8.4% n/a - -

24

Income statementTurnover breakdown

Connection Fees

25.9%

Others11.5%

Sales of Piped Gas

62.7%

1H FY08 1H FY09 1H FY10

Connection Fees

25.0%

Others12.0%

Sales of Piped Gas

63.0%

Others1.3%

Connection Fees

14.2%

Sales of LPG44.4%

Sales of Piped Gas

40.1%

25

Financial summaryBalance sheet & debt position

HK$ ('000) 1H FY10 FY09

Total Assets 19,451,891 18,086,766

Total Equity 4,477,943 4,017,271

Shareholder's Equity 3,648,305 3,223,270

Cash 2,503,123 2,896,457

Short-term Bank Debt 3,102,667 * 3,103,855

Long-term Bank Debt 7,968,539 7,194,067

Convertible Bond 14,823 14,823

* Including HK$2,295,512,000 LPG Trading Facilities

26

Balance sheetGearing and debt maturity profile

Net Gearing at 148%1

Short-term debt primarily consists of trade financing from banks for the LPG trading business of Shanghai Zhongyou

Bank borrowings consist primarily of bank loans

Management is committed to prudent capital management, and a significant portion of the Group’s debt is long term

Debt Maturity Profile

Note 1): As at 30 September 2009Net Gearing = Net Debt Excluding LC Related Trading Facilities / Total Equity

FY2010-11 Guidance

28

FY2010-2011 guidance

Management will focus on organic growth of existing city gas and pipeline projectsNew investments will be on opportunistic basis

FY2010 FY2011

Gas volume (m3) 3.3 – 3.5 bn 4.5 – 5.0 bn

New residential connections 500,000 – 520,000 600,000 – 650,000

CNG stations to reach 90 – 100 120 – 130

LPG sales to reach 1.2–1.3m tons 2.0 – 2.2m tons

Sector Outlook

30

Coal69.5%

Crude Oil19.7%

Natural gas3.5%

Hydro/ others7.3%

Natural gas10.0%

Others90.0%

Coal66.1%

Crude Oil20.5%

Natural gas5.3%

Hydro/ others8.1%

Natural gas market

2007 2010 Forecast

Gas total = 69bn m3

Source: National Development and Reform Commission of China, China National Bureau of Statistics, Macquarie Research

Gas total = 120bn m3 Gas total = 280bn m3

2020 Forecast

31

LPG market

-

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Feedstock for Cracking

Industry

Commercial (Transportation and etc)

Residentail Gas

China LPG Demand by Sector

Mill

ion

tons

-8

-6

-4

-2

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

SupplyDemandNet Trade

China LPG Supply and Demand

Mill

ion

tons

Source: Company data

32

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

China

United States

G7 Average

32

Natural gas demand growth

China’s economic outperformance is expected to continue

Major volume and revenue growth drivers going forward:

– Increase in penetration rate: From 25% to 60% by 2014 – enhanced connection fee income

– More industrial connections: Previously constrained by limited supply of gas; waiting lists in cities will gradually be shortened

– CNG stations rollout: To build at least 120 new CNG stations in 30 cities by 2012

– Integration of LPG supply chain: To achieve the sale target of 3m tons of LPG sale by 2012

Real GDP vs. 2000 levels

Forecasts

Source: International Monetary Fund

3333

Natural gas supply growth

Growth made possible by:

– Additional gas supply from PetroChina as a result of the cooperation agreement

– Commissioning of new gas fields

– Xinjiang Province

– Inner Mongolia

– Sichuan Province

– Commissioning of new national pipelines

– Sichuan – East Pipeline

– West – East Pipeline II

– Import of piped gas from Central Asia, Russia and Myanmar

– Completion of additional LNG terminals

-

50

100

150

200

250

300

350

400

450

500

550

600

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

LNG imports

Pipeline imports

Other imports

CNOOC

Sinopec

PetroChina

Billi

on m

3

Source: NDRC, Macquarie Research

China Natural Gas Supply Projection

3434

Natural gas pricing

Wellhead and retail prices are bound to hike because of new gas sources and imports

Expect an average of 8-10% increase per annum in the next 5 years

Natural gas pricing reform is expected to be implemented in early 2010

Pricing reform helps:

– Transparency and clarity of price adjustment mechanism

– Maintain price competitiveness of natural gas against alternative fuels

Cost pass-through mechanism will continue to function

– Pass on price adjustments to end-users

35

Disclaimer

Statements in this presentation and handout that are not strictly historical are “forward-looking” statements. Forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company’s product and services in the marketplace, competitive factors, new products and technology changes, the Company’s dependence upon third party suppliers and other risks detailed from time to time in the presentation, handout and other related documents. China Gas is not responsible for the accuracy and completeness of the contents of such presentations and/or other documents. The materials and information in the presentations and other documents are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice.