With the promotion of air pollution prevention and control actions and carbon emission reduction, natural gas occupies an increasingly important position in China's energy consumption structure. This paper analyzes the upstream, midstream and downstream status of China's natural gas industry by analyzing and interpreting China's natural gas production, the construction of natural gas pipeline network, and national policies. Through the study, it is found that the development of China's natural gas industry is characterized by the mismatch of natural gas supply and demand, too high dependence on foreign countries, insufficient natural gas pipeline network equipment, inadequate natural gas pricing mechanism, and deficiencies in the management of natural gas-related regulations. In the future, we should continue to increase the supply of natural gas through multiple channels, intensify the construction of natural gas industry infrastructure, accelerate the formation of natural gas market pricing mechanism, and continuously improve the natural gas industry related regulations and supervision, in order to promote the sustained and healthy development of China's natural gas industry.