Changfeng Announces an Increase in Natural Gas Selling Price to Non-residential Customers in Sanya City

Changfeng Energy Inc. ("Changfeng" or the "Company") , a natural gas utility in China, announced today that the Company has received regulatory approval to increase natural gas sale price to its non- residential customers in Sanya City, Hainan province, China, effective on November 24, 2012. With the approval, the selling price to its non-residential customers will be increased to RMB 4.70 M(3) from currently RMB 3.8 M(3), representing an increase of approximately 24% over current price. The selling price to its residential customers will remain unchanged. The Company's non-residential customers include both its commercial and industrial customers, mainly comprising of the hotels, resorts and restaurants in Sanya City. Currently, approximately 80 percent of the total annual volume of gas in Sanya City is sold to these non-residential customers.

The approval of the sales price increase relates to the implementation of the long term Budget Process ("the Budget Process') as previously announced on June 27, 2012 that was approved by Sanya Municipal government as part of the solution to address the ongoing gas shortage issue in the Sanya Region.

(menafn.com, Edited by Topco)