China Energy to triple its production capacity

Rising PRC energy consumption propels China Energy on US$443 million expansion plans

· Triple Methanol production capacity from existing 250,000 metric tons per annum (“mtpa”) to 750,000 mtpa by end 2008
· Increase in internal Methanol production to enhance operating margins and mitigate future price volatility from external Methanol sources
· DME capacity expansion plans to progress in tandem with internal Methanol production growth to enhance profitability
· Total planned DME capacity of 3.6 million mtpa by end 2009, up from initial target of 3.2 million mtpa