China Natural Gas, Inc. is an integrated natural gas operator in the Peoples� Republic of China, primarily involved in the distribution of compressed natural gas (CNG), through the CNG fueling stations owned by its variable interest entity (VIE), Xi�an Xilan Natural Gas Co., Ltd. (XXNGC). As of December 31, 2011, the Company operated 25 CNG fueling stations in Shaanxi Province and 12 CNG fueling stations in Henan Province. The Company's VIE owns its CNG fueling stations while the Company leases the land upon which its CNG fueling stations operate. During the ended December 31, 2011, the Company sold 162,752,780 cubic meters of CNG through the fueling stations. It distributed and sold piped natural gas to approximately 116,790 residential customers as of December 31, 2011.