Abstract: The current status of natural gas industry woridwideand its prospects in China are discussed. The ultimatenatural gas resourees in the world are estimated at 283tril1ion m', of which total 2.2997O5 trillion m3 wererecovered in l997. Annual output increasing rate averagedout 3.14%,much higher than that of crude oil and otherenergy resources in the same period. The ultimaterecoverab1e natural gas usources in China are about l0.5trillion m3, the 0utput was 22.3 billion m3 in l997,increased 6.5l%. NGL makes up of 28.66% of the totalnatural gas trade, and the demand increasing rate will'reach 7% in the next lO years.