Abstract: Along with the acceleration pace of China'S industrialization and urbanization, environmental protection is catching more and more attention, demand for natural gas will grow dramatically. However, there are some problems in the natural gas development process due to weak infrastructure and unsound regulatory policy. In line with the unbalanced regional development of China's natural gas industrv, the basic policy objectives of the government shall be to support resource development and infrastructure construction, encourage expansion of natural gas utilization. The government shall formulate necessarv laws and regulations to ensure a stable investment environment and maintain fair market order, which will be helpful to realize the short-term objectives herein in China's natural gas industry.