Abstract Large amount of nature gas reserve has been found in the deep formations of volcanic gas reservoir in recent years in Songliao Basin, north-east of China. Because of its complicated geological condition, reservoir characteristics and obscurity of knowledge of the people, economic evaluation becomes a crucial measurement in order to insure the feasibility of the gas production projects. Take Changshen area of Jilin gas field as an illustration, discounted cash flow (DCF) model was used, net present value, interior rate of return and payout time was selected as economic indicator. The CAPEX and OPEX were assessed based on engineering schedules. The operating conditions and production profile were optimized by using reservoir engineering numerical simulation. Other parameters, such as gas price, tax rate, discount rate etc. were coming from the rules and regulations of the government. The results indicate that the economic benefit of the project is marginal. Project feasibility, as expected, was found to be very sensitive to gas price, gas production, and CAPEX. Project financial analysis indicates a couple of key points which may affect the development of volcanic gas reserve, (1) a significant increase of CAPEX and OPEX was found, which are obviously higher than the ordinary reserve’s, (2) CO2 may be used as a byproduct and increase the project’s income only it has its commercial purpose, (3) no preferential policy of carbon emission reduction in China, and (4) local gas price is on the low side. Finally, several suggestions are presented in this paper (1) formulate the various terms of the tax credit policy, (2) enact relevant rules and regulations of carbon emissions trade, (3) foster the local industrial gas market to increase the gas price, and (4) increase the financial input into the critical research of the development technique of volcanic gas reserve.