1. 1H FY2010 Results Briefing 16 December 2009

2. Operational Highlights 1H FY2010

3. 3 Natural gas Sales volume Total sales volume (million m 3 ) PeriodSales Growth – Total 1H10106.0% 1H09110.9% 1H08124.6% PeriodSales Growth – Natural Gas Only 1H10101.8% 1H09138.0% 1H08117.3% 66.7 746.8 313.8 380.5 802.3 1,652.5 55.5 145.5 1,507.0

4. 4 Natural gas Customer breakdown Natural gas sales volume (million m 3 ) 44.7 191.1 35.8 42.2 105.7 497.1 66.5 77.5 SectorSales Volume Growth in 1H10 % of Total Volume CNG Stations 39.1%7.2% Commercial118.6%9.6% Industrial119.0%72.2% Residential56.2%11.0% 746.8 313.8 1,507.0 107.8 145.4 1,088.7 165.1

5. 5 Natural gas Customer data Customer Growth OrganicAcquired 1H10 Portfolio Total Change from 1H09 1H09 Portfolio Total Residential289,262163,2734,197,90523.5%3,399,100 Industrial1054529116.8%244 Commercial1,75219130,45424.8%24,402 CNG Stations7-6734.0%50 Customer Tariffs (ex-tax) (RMB / m 3 ) 1H10Change from 1H091H091H08 Residential1.841.1%1.821.74 Industrial2.034.1%1.951.49 Commercial2.3114.4%2.022.05 CNG Stations2.14-7.4%2.311.98

6. 6 LPG Operational data 1H10FY09* LPG Sales Volume (tons)435,900495,155 LPG Average Sales Income per ton (HKD)4,0104,589 Operational Location (Cities)2217 * The acquisition of the LPG business was completed in September 2008. Therefore, the FY09 figures above do not capture full year performance

7. 7 2,374.7 4,485.0 8,913.0 Other operational data Natural gas daily consumption (000 m 3 ) Penetration Rate (%) Urban Population Covered (m) Urban population covered and penetration rate 379.8 1413.7 291.5 496.5 3,075.5 437.0 40.7 44.0 476.0 5,963.0 1,437.0 890.0 623.0 292.0 50.9

8. 8 Other operational data 1H10Change from 1H091H091H08 Residential Connection Fee (RMB per customer) 2,4188.5%2,2282,368 Total Pipelines (km) 28,99069.8%17,07314,483

9. 99 Natural gas Current project locations Beijing Shanghai Heilongjiang Jilin Liaoning Inner Mongolia Xinjiang Tibet Qinghai Gansu Ningxia Shaanxi Shanxi Henan Shandong Hebei Jiangsu Anhui Zhejiang Fujian Jiangxi Hunan Guangdong Taiwan Guangxi 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

10. Financial Highlights 1H FY2010

11. 11 Financial summary Income Statement HK$ ('000)1H FY10% change1H FY09 (restated)1H FY08 Turnover3,937,292138.7%1,649,787877,762 Gas Sales1,577,11251.7%1,039,417549,941 Connection Fees559,26935.4%412,950227,027 LPG Sales1,748,104--- Other52,807-73.3%197,420100,794 Gross Profit934,03168.9%553,100271,802 Profit after tax490,778338.2%111,98674,476 Profit Attributable to Shareholders431,778484.8%73,83664,711 Basic EPS (HK Cents)12.95483.3%2.222.05 Gross Margin – Gas Sales22.9%n/a19.3%13.6% Gross Margin – Connection Fees74.8%n/a76.5%80.0% Gross Margin – LPG Sales8.4%n/a--

12. 12 Income statement Turnover breakdown 1H FY081H FY091H FY10

13. 13 Financial summary Balance sheet & debt position HK$ ('000)1H FY10 FY09 Total Assets19,451,89118,086,766 Total Equity4,477,9434,017,271 Shareholder's Equity3,648,3053,223,270 Cash2,503,1232,896,457 Short-term Bank Debt3,102,667 *3,103,855 Long-term Bank Debt7,968,5397,194,067 Convertible Bond14,823 * Including HK$2,295,512,000 LPG Trading Facilities

14. 14 Balance sheet Gearing 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 2009 Net Gearing = Net Debt Excluding LC Related Trading Facilities / Total Equity

15. FY2010-11 Guidance

16. 16 FY2010-2011 guidance Management will focus on organic growth of existing city gas and pipeline projects New investments will be on opportunistic basis FY2010FY2011 Gas volume (m 3 )3.3 – 3.5 bn4.5 – 5.0 bn New residential connections500,000 – 520,000600,000 – 650,000 CNG stationsto reach 90 – 100120 – 130 LPG salesto reach 1.2–1.3m tons2.0 – 2.2m tons

17. 17 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.