Corporate Presentation April 2010

2 Table of contents SectionPage 1About China Gas3 2Operational Highlights 1H FY Financial Highlights 1H FY FY Guidance27 5Sector Outlook29

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 m 3 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 gas Business 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* Residential households* Commercial users*Car refueling station National or provincial pipelines

66 Natural gas Revenue 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 price Transportation Transmission tariffs Distribution Distribution cost + margin END-USER TARIFF COMPONENTS Natural gas business operates on a cost-plus pricing model NDRC ApprovalLocal Price Bureau Approval

77 Natural gas Project development process Bid & award Construction & development months Operation 30 years About projects under review Investment criteria include: 1. Project IRR > 15% 2. Industrial demand 3. Natural gas accessibility Revenue: Gas connection fees Projects under development 2007: 20 projects 2008: 18 projects 2009: 47 projects 1H FY10: 34 projects Revenue: Sales of piped gas Projects in operation 2007: 37 sites 2008: 50 sites 2009: 63 sites 1H FY10: 80 sites China Gas has a strong track record of developing city gas projects on time and on budget

88 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

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 m 3 We aim to construct at least 120 CNG automobile filling stations by 2012 –Annual CNG sales volume is expected to reach 800 million m 3 –Projected annual sales of approximately RMB 2.0 billion

10 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 m 3 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 LPG Business model Class 1 Station Storage Facilities Industrial users Domestic supply

12 LPG Current project locations Guangdong Nansha Huakai Class I Storage with 50,000-ton terminal and storage capacity of 56,700m 3 Shantou Class II Storage with 5,000-ton terminal and storage capacity of 3,020m 3 Guangxi Fangcheng Class I Storage with 50,000-ton terminal and storage capacity of 49,000m 3 Fujian Fuzhou Hengyuan Class II Storage with 1,000-ton floating pier and storage capacity of 1,700m 3 Jingjiang Xiahua Class II Storage with 5,000-ton terminal and storage capacity of 2,020m 3 Jiangsu Jingjiang Class I Storage with 50,000-ton terminal and storage capacity of 57,800m 3 Zhejiang Haiyan Class I Storage with storage capacity of 4,400m 3 Wenzhou Xiaomen Island Class I Storage with 50,000-ton terminal and storage capacity of 97,000m 3 ; Leqing Transfer Station with storage capacity of 900m 3 ; Yongjia Huadian Class II Storage with 1,000-ton floating pier and storage capacity of 1,000m 3 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 Hubei Other LPG Assets - 35 Class III stations in the 5 coastal provinces - 96 retail shops - 8 LPG vessels LPG trucks

13 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 FundPublic 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 m 3 Imports 6% PetroChina 73% Sinopec 12% CNOOC 9%

Operational Highlights 1H FY2010

16 Natural gas Sales volume Total sales volume (million m 3 ) PeriodSales Growth – Total 1H % 1H % 1H % PeriodSales Growth – Natural Gas Only 1H % 1H % 1H % , ,507.0

17 Natural gas Customer breakdown Natural gas sales volume (million m 3 ) 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% , ,

18 Natural gas Customer data Customer Growth OrganicAcquired 1H10 Portfolio Total Change from 1H09 1H09 Portfolio Total Residential289,262163,2734,197, %3,399,100 Industrial %244 Commercial1, , %24,402 CNG Stations %50 Customer Tariffs (ex-tax) (RMB / m 3 ) 1H10Change from 1H091H091H08 Residential % Industrial % Commercial % CNG Stations %

19 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 Therefore, the FY09 figures above do not capture full year performance

20 2, , ,913.0 Other operational data Natural gas daily consumption (000 m 3 ) Penetration Rate (%) Urban Population Covered (m) Urban population covered and penetration rate , , ,

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

Financial Highlights 1H FY2010

23 Financial summary Income Statement HK$ ('000)1H FY10% change1H FY09 (restated)1H FY08 Turnover3,937, %1,649,787877,762 Gas Sales1,577, %1,039,417549,941 Connection Fees559, %412,950227,027 LPG Sales1,748, Other52, %197,420100,794 Gross Profit934, %553,100271,802 Profit after tax490, %111,98674,476 Profit Attributable to Shareholders431, %73,83664,711 Basic EPS (HK Cents) % 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--

24 Income statement Turnover breakdown 1H FY081H FY091H FY10

25 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

26 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

FY Guidance

28 FY 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 – – 130 LPG salesto reach 1.2–1.3m tons2.0 – 2.2m tons

Sector Outlook

30 Natural gas market Forecast Gas total = 69bn m 3 Source: National Development and Reform Commission of China, China National Bureau of Statistics, Macquarie Research Gas total = 120bn m 3 Gas total = 280bn m Forecast

31 LPG market China LPG Demand by Sector Million tons China LPG Supply and Demand Million tons Source: Company data

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 levels Forecasts Source: International Monetary Fund

33 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 Billion m 3 Source: NDRC, Macquarie Research China Natural Gas Supply Projection

34 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.