Quantitative area risk assessment (QARA) method and its subsequent application in land safety planning for major hazard installations was initially studied in this paper. The basic principle and indicators of QARA were briefly introduced. Calculating models for individual and social risk, procedure for assessment as well as calculating software were developed. The developed method was applied to one oil and gas storage area. Individual risk contour and social risk F - N curve were established by the developed calculating software. The results show that the individual risk and social risk of the storage area are both beyond the allowed risk standards due to huge reserves of LPG and the high people density. The method shows theoretical and practical value in land use safety planning for major hazard installations and also for other kinds of disasters.