In this work, a novel approach was introduced to assess cost of loss resulting from risk as well as to help deciding inspection period through quantifying risk. In order to quantifying risk of city gas pipeline, frequency and consequence analysis were required. The main causes of city gas accident were analyzed to be digging, external corrosion, ground movement, and equipment failure. Tools to evaluate frequency of each cause was also suggested. Among city gas accidents, fire damage is the dominant one and mainly discussed; fatality, burning injury, and damage to building were estimated using the consequence model suggested. By combining frequency and consequence analysis, evaluating cost of risk management together with calculating example. This work could be applicable for city gas companies to plan how to manage risk most effectively.