Domestic natural gas production serves as the foundation of China's natural gas industry layout. It is of great significance to predict the medium and long-term production trend of its natural gas industry. In comparison to the United States, the natural gas E&P in China reveals the same direction of parallel development of conventional and unconventional gas, with a more aggressive change in China. This article presents a detailed review of several challenges that China has faced in natural gas production like resource characterization, developmental technology, economic effectiveness, organization, and management. Issues about safty and Environment have also posed a challenge to the country. It also discusses the progress and future advancement of exploration, development theory, and technology. Likewise, it evaluates the potential of conventional and unconventional natural gas exploration and development. It predicts the total domestic natural gas production to be 260 × 109 m3 in 2035, with conventional natural gas production stabilizing at 135 × 109 m3. It also perceives the unconventional natural gas production to increase at 116 × 109 m3 and dissolved gas production of 9 × 109 m3, which will serve as the decision basis for energy structure adjustment and strategic layout of import pipelines and gas storage in China.
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