With the significant economic growth in China, energy related environmental issues become more and more serious. Most of air pollutants are produced by burning coal. In order to achieve a sustainable balance between economic growth and environmental protection, China has been taking measures to expand the role played by natural gas, especially since the beginning of the 21st century. As the liquid form of natural gas, liquefied natural gas (LNG) has also been paid more attention in the country. This paper explores main motives for the fast development of China's LNG industry. An overview of the industry is also described, covering LNG receiving terminals, plants and transportation. Despite a relatively short development history of LNG industry in China, there are many remarkable successes. City-gas supply by LNG is widely applied in many small to medium cities, and LNG vehicles and cold energy utilization are growing rapidly with governmental supports. At the end, the developmental trends of China's LNG industry are introduced. All the discussions show that LNG is strategically important in China's future energy infrastructure. (C) 2010 Elsevier Ltd. All rights reserved.