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Municipal heating by coal contributes considerably to the haze pollution in Chinese cities during cold period, e.g., Beijing 53%. It is widely considered that, as a supplement of natural gas, the use of coal-based synthetic natural gas (SNG) to replace coal for municipal heating is conductive to mitigate the haze pollution in metropolitan areas. Would it still be a good alternative if the whole life cycle of SNG were taken into consideration? In this study, SNG as an alternative for municipal heating is analyzed in comparison with coal. To target cleaner production, life cycle assessment methodology is used to analyze SNG contribution to haze pollutants and greenhouse gases (GHGs) emissions, as well as energy consumption. Compared to coal heating route, SNG heating route could reduce 44% of the haze pollutants emissions from life cycle perspective and up to 98% of the emissions in urban area. Thus, if municipal heating were entirely supplied by natural gas and SNG, there would be 52% less haze pollutants emissions in winter of Beijing. However, this “good” performance is at the cost of transferring haze pollutants emissions from urban areas to SNG-producing regions. It is also at the cost of consuming 90% more coal and emitting 65% more GHGs than the coal heating route from life cycle point of view. To tackle the problems of haze pollutants transfer and the increase of GHGs emissions, the paper suggests implementing ecological compensation and carbon tax policies in the coal-based SNG industry. [ABSTRACT FROM AUTHOR]