Abstract: As a low-carbon fossil energy, natural gas plays an irreplaceable role in the energy system. Based on the prosperity index of China's natural gas industry in 2021, this paper analyzes and explores the environment, problems and development strategies of China's natural gas industry. It is found that driven by the "carbon peaking and carbon neutrality" goals, the development of China's natural gas industry continues to improve, creating a broad space for natural gas demand growth. However, the development of China's natural gas industry is also facing a series of challenges, such as high dependence on foreign natural gas, uncertainty of world energy environment, great impact of renewable energy development;inside the industry, problems are inadequate core technology, unbalanced supply and demand, and defects in operation mechanism. At present, efforts should be made to break through core technologies, improve peak shaving ability and deepen market reform in order to achieve high-quality development of natural gas industry.

Key words: natural gas industry prosperity indexes, energy environment, carbon peaking, carbon neutralization, low-carbon fossil energy