Abstract: For the sake of establishing miniature underground natural gas storage to meet the demand of urgent needs and gas season peak shaving of Shandong natural gas marketplace, optimized criteria of choosing underground natural gas storage site are defined, and underground natural gas storage target, Es₁ gas cap reservoir of Shengtuo 1st district in Shengli Oilfield, is picked out. Aimed at underground natural gas storage target, the systemic feasibility analysis, such as gas entrapment, geological structure, capping formation, reservoir characteristic, natural gas property, original gas reserves, gas productivity, gas recovery efficiency and gas pipeline construction, are carried out. After that, operating parameters of underground natural gas storage are planned out, and well sites of gas storage are designed. Analysis and design provide a research base for the performing production of miniature underground natural gas storage.