Canadian transport sector produces significant air emissions and is a major contributor to green house gas emissions. Canada has the option of using natural gas as transportation fuel. This work is about the two derivatives of natural gas, LNG and CNG, which Canada can look upon in future to reduce emissions to some extent. In this report, four aspects (technical, environmental, economic and socio-political) of each fuel are discussed briefly along with some pros and cons of using these fuels. To confine the scope of this work, upstream process is not included, which is the same for both the fuels. Published articles, journals and some guideline books were consulted to undertake a comparative analysis of LNG and CNG. It was found that CNG has comparatively less risks for investors and is less cost intensive, which can attract investments in future. However, environmentally, it was difficult to predict which of the two energy forms, is better than the other.