The natural gas industry is crucial for the carbon emission reduction, energy security, and structural transformation of China's energy system. Therefore, the high-quality development of the industry can inject impetus for the green transformation of the economy and society, construction of a new type of energy system, technological innovation, and international cooperation. This study analyzes the basis for and major challenges faced by the high-quality development of China's natural gas industry. Specifically, the weak links in the high-quality development of the natural gas industry is mainly manifested in the insufficient supply capacity, incomplete market mechanism, and lack of innovation capabilities regarding key technologies and equipment. In this regard, the study proposes a path for the high-quality development of China's natural gas industry: (1) guaranteeing the safe supply of natural gas, (2) improving the market system of the natural gas industry, (3) promoting the upgrading of technologies and equipment in the natural gas industry, and (4) accelerating the green and low-carbon development of the natural gas industry. This aims to innovate the development ideas of the natural gas industry and better satisfy the requirements for realizing high-quality economic development, guaranteeing energy security, promoting carbon peaking and carbon neutralization, and achieving balanced industrial development.