Abstract: Low-carbon economy and energy saving promote the urban gas industry to develop rapidly and sturdily.Infrastructure construction and state policy also create favorable conditions for the rapid development of urban gas industry.The urban gas in China is composed of source gas such as natural gas, liquefied petroleum gas and manufactured gas.West-to-East Gas Transmission Pipeline was put into commercial operation in 2004. It was the first time that the gas population had been more than that of manufactured gas and closed to the LPG population by 2009.The total consumption of gas had exceeded the LPG, which occupied 56.4% market share by 2009, and natural gas had become the leading gas source.At present, Market development and enterprise operation are facing with challenges, and at the same time, guaranteeing the safety and stability for pipeline operation become important duty for natural gas companies.Using natural gas as the main source of urban gas is an inevitable trend, LPG will be served as the beneficial supplement for natural gas and will develop steadily and the manufactured gas will retreat the gas market eventually.The urban gas industry is required to establish and improve the related laws and regulations, increase integrated strength, raise the public safety consciousness and lay stress on the infrastructure construction like emergency peak shaving.