Abstract: By comprehensive analysis on the characteristics of petroleum geology in the Kuqa Depression in this paper, it is pointed out that the Kuqa Depression has good pool-forming conditions for natural gas. The Kuqa Depression is rich in gas sources, and has favorable gas-source conditions to form giant gas fields. Fractures play an important controlling role in the formation of gas accumulations. They link deep gas sources to shallow reservoirs, and are main pathways for the vertical migration of natural gas. Late pool-forming periods and the Tertiary undercompacted mudstone forming large area of pressure sealings are advantageous to the preservation of natural gas. The generation, migration, accumulation, trap formation and other essential factors of natural gas in the Kuqa Depression are well disposed. This is advantageous to the formation of large-medium scale gas fields. Therefore, it is the favorable area in the Tarim Basin for prospecting large-medium scale gas fields.