Effected by the economic situation and the oil market, the mismatch between supply and demand has occurred in urban gas market. Moreover, the development pattern of urban gas in China also aggravates the imbalance between supply and demand. In such situations, the phenomenon of overstock always takes place for the urban gas company. It has been proved that put options can provide ?exibility of downward adjustment to cope with supply-demand imbalance and improve the performance of the supply chain. There are few researches on whether put options bring risks to the urban gas company or not. This paper focuses on the risk analysis of introducing put options to the supply chain of urban gas industry.