China Gas Holdings Limited (HKG:0384) Partners with IMW From Canada To Develop CNG Vehicle Fueling Market

Hong Kong, April 17, 2009 AEST (ABN Newswire) - Leading PRC piped gas operator China Gas Holdings Limited ("China Gas")(HKG:0384) and IMW Industries Ltd. ("IMW") from Canada signed a Memorandum of Understanding ("MOU") today committing to form a strategic partnership to develop compressed natural gas ("CNG") for natural gas vehicles ("NGV") both in the PRC and potential markets around the world.

The signing ceremony was held today in Hong Kong in the presence of prominent guests, including The Honourable Stockwell Day, PC, MP, Canadian Minister for International Trade and Minister for the Asia-Pacific Gateway, Doreen Steidle, Consul General of Canada in Hong Kong, Stephen S. Poloz, Senior Vice President-Financing and Winston Kan, Chief Representative Greater China for Export Development Canada.

Pursuant to the cooperation between China Gas and IMW, IMW and its wholly owned Chinese subsidiary, IMW Compressors (Shanghai) Co., Ltd., will provide China Gas with a series of products and services including high quality equipment and support services, related design, engineering and construction services, as well as technologies in association with CNG/NGV fueling stations in the PRC and even worldwide. As a preferred strategic supplier to China Gas, IMW will be supplying a minimum of 120 fully integrated CNG fueling stations for taxis and buses over the next three years. China Gas will also receive essential parts, management support, staff training and maintenance support from its partner. All these will be accessible at very competitive prices to China Gas for its future CNG vehicle fueling station projects. In addition, the two parties have reached consensus on cooperation issues including lowering of carbon emission, international market development and consultation. This strategic cooperation is in part the result of successful matchmaking by Export Development Canada, which is Canada's Export Credit Agency, having participated in previous financing to China Gas.

Founded in 1912 in Canada, IMW Industries Ltd. is a pioneering supplier of equipment for CNG vehicle fueling stations around the globe. Its natural gas compressors have been available globally since 1984 and to the PRC market for a decade now and are recognized in the market for their advanced technology and premium quality. IMW is the leading foreign supplier of CNG fuelling systems in the PRC and now with domestic production facilities, IMW Compressors (Shanghai) Company intends to be number one overall in China for the supply of engineered systems for such end applications for natural gas as bus and taxis fuelling stations, transported gas for residential cooking/heating and industrial gas use.

Mr. Brad Miller, President of IMW, commented, "IMW has a long history of building strong relationships throughout the world in order to provide high quality, cost effective and environmentally friendly CNG fueling solutions. This is particularly true in the PRC where we have helped pioneer CNG as a vehicle fuel through the installation of many conventional and "mother-daughter" systems, all using our superior "oil free" equipment to maximize the environmental benefit of CNG while reducing operating and maintenance costs. In these challenging economic times, this agreement is an example of how companies can work together with governmental agencies like EDC to accomplish mutual goals of trade, job creation, and infrastructure development leading to a healthier environment for all. It is encouraging to note that when complete, this project will result in a reduction of approximately 150,000 tons of green house gases annually, something that we can all be proud of. China Gas is a world class leader in our industry, and we look forward this strategic cooperation strengthening each other as we work together in the coming years to achieve our mutual goals."

Mr. Liu Ming Hui, Managing Director of China Gas, said, "Heeding the tight supply of petroleum resources and the need to address the worsening problem of air pollution, the State Council initiated in 1999 the formation of the 'National Clean Auto Coordination Leading Group' involving 13 Ministries and Commissions including the Ministry of Technology and State Environmental Protection Administration to plan and drive a national clean vehicle campaign. The move has opened a new chapter of development for the natural gas-powered automobiles in the country."

Mr. Liu concluded, "At China Gas, we have identified CNG vehicle fueling station operation as a new growth driver and have begun planning the development and deployment of resources for this business. This latest partnership will see China Gas and IMW cooperating on all fronts in relation to development of the business in and outside the PRC. From now on, we will strive to realize our advantages in technology, management, market positioning and capital to speed up development of our CNG vehicle fueling business aiming for bigger market share. China Gas is set to become an important player in the natural gas vehicle sector not only in the PRC but worldwide in the near future."

ENDS

About IMW

Founded in 1912 in Canada, IMW Industries Ltd. is a pioneer in the provision of equipment for CNG vehicle fueling stations around the globe. Its natural gas compressors have been available globally since 1984 and to the PRC market for a decade and are recognized in the market for their advanced technology and premium quality. IMW is the leading foreign supplier in the PRC, accounting for the majority of the imported natural gas compressor market. To capitalize on the fast growing CNG vehicle fueling demand in the PRC, the company set up the wholly-owned subsidiary IMW Compressor (Shanghai) Co. Ltd., which has allowed it to be in the market and quickly meet customers' needs as it relates to compressed natural gas engineered equipment, parts and services. IMW operates in over 26 countries supplying compressed natural gas engineered systems for fuelling of vehicles, industrial burners and power stations converted from diesel to natural gas, gas gathering and virtual pipeline systems (gas transportation) by truck, rail and ocean carriers. Engineering and integrated systems supply includes metering/regulating, gas drying, oil free gas compression (mother, standard and daughter stations), dispensers/fill posts, gas transportation and pressure reducing systems.

More information may be obtained at http://www.imw.ca

Contact

Strategic Financial Relations Limited Ingrid Cheng Tel: (852) 2864 4836 ingrid.cheng@sprg.com.hk Derek Lee Tel: (852) 2864 4858 derek.lee@sprg.com.hk Ming Chan Tel: (852) 2864 4892 ming.chan@sprg.com.hk Cornia Chui Tel: (852) 2864 4853 cornia.chui@sprg.com.hk