Changfeng has announced that it is developing a new project on Mainland China along the Second West-East Pipeline in Xiangtan City, Hunan Province. The Company set up a joint venture company, Xiangtan Changfeng Natural Gas Co. Ltd, which is 51% owned by Changfeng, together with a company owned by the local municipality, Xiangtan Economic Construction and Development Investment Co. Ltd and a local investment company. The Joint Venture is working with the municipal government to secure exclusive concession rights in designated regions of Xiangtan City. The scope of the business of the Joint Venture is to develop a natural gas pipeline network to serve industrial, commercial and residential customers; and develop CNG (Compressed Natural Gas) and LNG (Liquefied Natural Gas) refueling stations. The Joint Venture is also working to secure a natural gas supply agreement from Petro China’s Hunan subsidiary. Petro China is the owner and operator of the Second West-East pipeline.