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What is CNG ? Compressed natural gas, or CNG, is natural gas under pressure which remains clear, odorless, and non-corrosive. Although vehicles can use natural gas as either a liquid or a gas, most vehicles use the gaseous form compressed to pressures above 3,100 pounds per square inch. How is natural gas produced? Most natural gas comes from three types of wells: natural gas-and-condensate wells, oil wells, and coal bed methane wells. In 2003, California had over 1,200 natural gas-and-condensate wells operating. Well-extracted natural gas requires a cleanup process before it can be used in vehicles or residences.