Abstract: In order to describe and analyzes the peak shaving procedure of gas pipeline with underground gas storage and compressor station impersonality and accurately, make proper peak shaving project which meets the demand of consumers, the dynamic simulation of gas storage and peak shaving are conducted for gas pipeline to analyze the operating condition of pipeline when there is fluctuant in gas consumption and determine the maximum day gas extract speed to fulfill the demand on peak shaving in the winter for underground gas storage design. The matching rule of compressor, pipeline and gas storage is concluded in this paper.