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QINGDAO, China, Aug. 9 /Xinhua-PRNewswire-FirstCall/ — Sinoenergy
Corporation (OTC Bulletin Board: SNEN), (”Sinoenergy” or the
“Company”), a manufacturer of compressed natural gas (CNG) vehicle equipment and
CNG station equipment as well as an operator of CNG stations in China,
announced today that it has signed an agreement with Sinopec (NYSE:
SHI) to secure the supply of 200 million cubic meters of natural gas per
year for 20 years to Anhui Gather Energy Gas Co., Ltd (”Anhui Gather”),
a 45% subsidiary of Sinoenergy.  The supply will be for CNG vehicles
and will commence after the Sichuan-Shanghai gas pipeline begins its
operation.
Anhui Gather is owned by Sinoenergy and Hong Kong China New Energy
Development Investment Co. Ltd (”New Energy”), capitalized with $5.0
million of investments. It plans to build and operate 2 CNG processing
factories for the wholesale of natural gas. Operating at 200 million
cubic meters of natural gas per year, the factories can generate a revenue
of up to $50 million and net income of $10 million. The Xuancheng
government has also agreed to provide Anhui Gather the usage of the 40,000
square meter construction site and a preferential income tax rate. Anhui
Gather will receive tax-exemption during its first two profitable
years, and it will be assessed half of the normal tax rate for the
following three years.
The agreement sets forth Sinopec抯 commitment to provide Anhui
Gather an initial annual volume of 50 million cubic meters per year with
the possibility of increasing to 200 cubic meters per year. Sinopec is to
begin supplying Anhui Gather Energy once the Sichuan-Shanghai natural
gas pipeline is operational beginning in 2009. The actual sales volume
is subject to annual natural gas purchase agreements, and the price is
subject to future determination.
The Sichuan-Shanghai natural gas pipeline will carry gas from the
Pugang gas field, which is one of the largest gas fields in China and
has approximately 700 billion cubic meters of proven natural gas
reserves.
“This is the second gas supply agreement we have signed with
Sinopec in 2007, and Sinoenergy now has up to 400 million cubic meters of
natural gas available from Sinopec,” remarked by Mr. Deng Tianzhou,
Chairman of Sinoenergy. “With this plentiful supply, we feel confident in our
ability to execute our CNG filling station expansion strategy. We plan
to increase our CNG wholesale and retail businesses and accelerate the
development of other business lines, including the CNG automotive
conversion kit business.”
Sinoenergy is currently in a growth campaign which involves the
construction and operation of 30 new CNG filling stations. Construction is
currently underway at six stations, with 10 filling stations in the
design phase and the remaining 14 stations in the early preparation
stage. The Company expects to open the initial group of filling stations in
August 2007, with the remainder opened by the end of 2007.

About Sinoenergy
Sinoenergy is a manufacturer of compressed natural gas (CNG)
vehicle and gas station equipment as well as a designer, developer and
builder of CNG stations in China. In addition to its CNG related products,
the Company also manufactures a wide variety of pressure containers for
use in different industries, including the design and manufacture of
various types of pressure containers in the petroleum and chemical
industries, the metallurgy and electricity generation industries and the food
and brewery industries.

Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements of
historical fact in this announcement are forward-looking statements, including
but not limited to, the Company抯 ability to raise additional capital to
finance the Company抯 activities; the projected completion of the
Sichuan-Shanghai pipeline; the effectiveness, profitability, and the
marketability of its products; legal and regulatory risks associated with the
share exchange; the future trading of the common stock of the Company;
the ability of the Company to operate as a public company; the period
of time for which its current liquidity will enable the Company to fund
its operations; the Company抯 ability to protect its proprietary
information; general economic and business conditions; the volatility of the
Company抯 operating results and financial condition; the Company抯
ability to attract or retain qualified senior management personnel and
research and development staff; and other risks detailed in the Company抯
filings with the Securities and Exchange Commission. These
forward-looking statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and projections
about the companies and the industry. The Company undertakes no
obligation to update forward-looking statements to reflect subsequent
occurring events or circumstances, or to changes in its expectations, except
as may be required by law. Although the Company believes that the
expectations expressed in these forward looking statements are reasonable,
they cannot assure you that their expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results.

For more information, please contact:

Sinoenergy Corporation
Ms. Laby Wu
CFO
Tel:   +86-10-8492-8149
Email: labywu@gmail.com

CCG Elite Investor Relations Inc.
Mr. Crocker Coulson
President
Tel:   +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com

SOURCE  Sinoenergy Corporation