1 Corporate Presentation May 2011. 2 Table of Contents SectionPage 1 About China Gas3 2 Natural Gas Business8 3 Liquefied Petroleum Gas Business12 4 Operational.

1

Corporate PresentationMay 2011

2

Table of Contents

Section Page

1 About China Gas 3

2 Natural Gas Business 8

3 Liquefied Petroleum Gas Business 12

4 Operational Highlights 1H FY2011 17

5 Financial Highlights 1H FY2011 24

6 FY2011-12 Guidance 27

About China Gas

4

China Gas 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 146 city concessions with 30-year monopolistic operating right each

– Possesses a pipeline network of more than 52,746 km serving approximately 5.6 million household users and nearly 37,623 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

– Covering wholesale and retail LPG supply in Guangdong, Guangxi, Fujian, Zhejiang, Jiangsu and Anhui provinces.

5

Strategic Partnerships

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 & Founders

(2002)

SINOPEC(Dec 2004)

Oman Oil(Jan 2006)

GAIL(May 2005)

Oman Fund(Nov 2007)

ADB(Oct 2006)

Public

SK (June 2008)

12.28% 4.82% 5.45%4.82% 3.71%3.44% 9.74% 55.74%

As of 31 December 2010

6

Natural GasProject Development Process

Bid & award Construction & development12-18 months

Operation30 years

About 15 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 projects2010: 35 projects1HFY11: 43 projects

Revenue: Sales of piped gas

Projects in operation2007: 37 sites2008: 50 sites2009: 63 sites2010: 99 sites1HFY11: 103 sites

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

7

Beijing

Shanghai

Heilongjiang

Jilin

Liaoning

Inner MongoliaXinjiang

Tibet

Qinghai

Gansu

Ningxia

Shaanxi

Shanxi

Henan

ShandongHebei

Jiangsu

Anhui

Zhejiang

Fujian

JiangxiHunan

Guangdong TaiwanGuangxi

Hainan

Yunnan

Guizhou

SichuanChongqing

Tianjin

Hubei

Natural GasCurrent Project Locations

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, Tang County

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

Hunan Yiyang, Yuanjiang, Youxian

Guangdong Maoming, Conghua, Meizhou, Yunfu, Shanwei, Xinxingxian, Fengshunxian, Pingyuanxian

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

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

Inner Mongolia Hohhot, Wushenqi, Wushenqi Pipeline, Changmeng Pipeline, Baotou, 4 counties, Etoke Banner, Etuokeqi, Alashan, Zuoqi Tenggeli Industrial Zone

Ningxia Zhongwei

Fujian 29 city gas concessions

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

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

Zhejiang Hangzhou (Xiaoshan), Taizhou, Jinhua, Hangzhou Jiangdong Industrial Zone

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

Shandong Dezhou, Qingdao, 3 cities from Zhongyu Gas

Tianjin Tianjin Pipeline

Heilongjiang Harbin, Jiamusi, Shuangcheng, Mudanjiang, Jiagedaqi

Jiangxi Nanchang (Wanliqu)

Henan 8 city gas concessions from Zhongyu Gas

Gansu Lingtai County

Natural Gas Business

9

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

10

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

NDRC Approval Local Price Bureau Approval

Natural gas business operates on a cost-plus pricing model

11

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 Bi

llion

m3

China Natural Gas Supply Projection

Source: NDRC

Liquefied Petroleum Gas (LPG) Business

13

LPG Business

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 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, Anhui and Jiangsu;

– Downstream: Direct retail of bottled LPG to households.

Beijing

Shanghai

Heilongjiang

Jilin

Liaoning

Inner Mongolia

Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Shaanxi

Shanxi

Henan

ShandongHebei

Jiangsu

AnhuiZhejiang

Fujian

JiangxiHunan

Guangdong TaiwanGuangxi

Hainan

Yunnan

Guizhou

Sichuan

Chongqing

Tianjin

Hubei

LPG receiving terminals and storage facilities

14

LPGBusiness Model

Oil Refinery

LPG Receiving Terminal

Class 2 Station

Assets owned by the

Group

LPG vessels

LPG trucks

Trucks sending bottled LPG

Import/Domestic Supply

Class 1 Station

Storage Facilities

Domestic supply

Class 3 Station

Bottling Station

Residential householdsCommercial users

Industrial users City gas companies

15

Value Chain of LPG Supply

Oil Refinery Class 1 Station

LPG Wholesaler Class 2 Station

Bottled LPG Maker Class 3 Station

Bottled LPG Retailers

5-6% 6-7% 10-12%

Source: Company data

Gross Margin (%)

4-5%

16

LPG Supply and Demand in China

Source: Company data

China LPG Demand by Sector China LPG Supply and Demand

Operational Highlights 1H FY2011

18

Piped GasSales Volume (as at 30th Sep 2010)

Period Sales Growth – Total

1H FY11 14.3%

1H FY10 106.0.%

1H FY09 110.9%

Period Sales Growth – Natural Gas Only

1H FY11 21.8%

1H FY10 101.8%

1H FY09 138.0%

Tota

l sal

es v

olum

e (m

illio

n m

3 )

19

Natural Gas VolumeCustomer Breakdown (as at 30th Sep 2010)

SectorSales Volume Growth

in 1H FY11% of Total

Volume

CNG Stations 72.5% 10.1 %

Commercial 62.6% 12.9%

Industrial 8.3% 64.2%

Residential 42.0% 12.8%

Nat

ural

gas

sal

es v

olum

e (m

illio

n m

3 )

20

Natural GasCustomer Data (as at 30th Sep 2010)

Customer Growth Organic Acquired1H FY11

Portfolio TotalChange from

1H FY101H FY10

Portfolio Total

Residential 386,500 409,581 5,633,517 34.2% 4,197,905

Industrial 95 4 909 71.8% 529

Commercial 1,699 1,539 36,714 20.6% 30,454

CNG Stations 17 4 102 41.7% 72

Customer Tariffs (ex-tax) (RMB / m3) 1H FY11 Change from 1H FY10 1H FY10 1H FY09

Residential 2.06 12.0% 1.84 1.82

Industrial 2.16 6.4% 2.03 1.95

Commercial 2.48 7.4% 2.31 2.02

CNG Stations 2.37 10.7% 2.14 2.31

21

Penetration Rate

Urb

an P

opul

ation

Cov

ered

(m)

Natural gas daily consumption Urban population covered and penetration rate

(000

m3 )

Natural GasOther Operational Data (as at 30th Sep 2010)

22

1H FY11Change from

1H FY10 1H FY10 1H FY09

Residential Connection Fee (RMB per customer) 2,484 2.7% 2,418 2,228

Total Pipelines (km) 52,746 81.9% 28,990 17,073

Natural GasOther Operational Data (as at 30th Sep 2010)

23

LPG Operational Data (as at 30th Sep 2010)

1H FY11 1H FY10

Sale tonnage (ton) 508,482 435,900

Gross Margin (%) -0.14% +8.40%

Operating Margin (%) -3.67% - 0.14%

Financial Highlights 1H FY2011

25

Financial SummaryIncome Statement

HK$ ('000) 1H FY11 % change 1H FY10

Turnover 6,537,621 66.0% 3,937,292

Gas Sales 2,404,538 52.5% 1,577,112

Connection Fees 1,005,288 79.8% 559,269

LPG Sales 2,897,589 65.8% 1,748,104

Other 230,206 340.0% 52,327

Gross Profit 1,234,712 32.2% 934,031

EBIT 770,123 37.2% 561,507

Profit after tax 123,729 -74.8% 490,778

Core Earnings 296,169 25.5% 236,054

Gross Margin – Gas Sales 20.0% - 22.9%

Gross Margin – Connection Fees 70.7% - 74.8%

Gross Margin – LPG Sales -0.1% - 8.4%

26

Financial SummaryBalance Sheet & Debt Position

HK$ ('000) 1H FY11 1H FY10

Total Assets 26,380,903 19,451,891

Total Equity 6,413,152 4,477,943

Shareholder's Equity 4,948,470 3,648,305

Cash 4,258,280 2,503,123

Short-term Bank Debt 5,410,759* 3,102,667

Long-term Bank Debt 8,937,959 7,968,539

* of which HK$2,851,490,000 was Zhongyou Huadian LPG trade finance related facilities

FY2011-12 Guidance

28

FY2011-2012 Guidance

FY2011 FY2012

Gas volume (m3) 4.3 bn 5.0 bn

New residential connections 700,000 850,000

CNG stations to reach 110 140

LPG sales (million ton) 1.2 1.8

Enhance organic growth of existing city gas and pipeline projects in terms of residential penetration, industrial connections and CNG station rollout

Continue upstream LPG integration with refineries Sinopec and CNPC and enhance imports through Oman Oil’s connections in the Middle East

Active rollout of LPG downstream retail distribution network through the newly established JV with Oman Oil

29

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.