This report systematically examines the key points for natural gas liberalisation and regulatory reform in Europe and the United States over the past decades. It addresses market design, third-party access, capacity allocation, trading centre formation, pipeline tariff setting, and regulatory measures. In addition, the report analyses the transition process itself and identifies the related measures that can help national markets become more openly competitive. Based on these international experiences, the report then looks at the current situation of natural gas liberalisation in the People’s Republic of China, focusing on the importance of designing a suitable framework for the natural gas market by using best-policy tools. The central goal of this report is to allow policy makers in China to benefit from international experiences to effectively promote the current liberalisation, the success of which will also greatly influence the global industrial development of gas. This report is the result of a project involving relevant Chinese, European, and United States institutions under the overall oversight of the International Energy Agency.