China Natural Gas, Inc. (Nasdaq GM: CHNG), a provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial, and residential use in Xi'an, China, announced that a ship powered by liquefied natural gas (LNG) and modified by the company successfully completed its test navigation in Wuhan on August 3, 2010. The event is the first time an LNG-powered ship has navigated in China's domestic waterways, demonstrating that LNG can be used both in cars and ships as a transportation fuel. The company succeeded in fueling a tugboat weighing over 300 tons with LNG for Wuhan Ferry Company. The ship now runs on a fuel formula of 30% diesel and 70% natural gas, representing significant energy and cost savings.