Abstract: The slow development of product pipeline has been found unable to meet the demands of the development of product transporiation and sale. Produet pipeline development is more and more urgent according to the China New Market Economy situation. Analysis is performed in the article on the reason why product pipeline development has been difficult to develop. Presently, there are such characteristics in product trensportation as what is called, "transportation--sale", " one refinery for each province"and railway transportation--the main transportation means. On the basis of the above mentioned factors, it is necessary to search for ways of developing product pipeline industry.