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The Lower Cambrian Longwangmiao Formation in the Penglai gas area has promising carbonate reservoirs and exhibit strong gas indications, making itself a pivotal exploration zone following the Anyue gas field in the central Sichuan region. However, the lack of clarity regarding reservoir development patterns has constrained exploration deployment. Through comprehensive analysis of the most recent drilling and testing data, this study systematically examines the reservoir characteristics and primary controlling factors of the Longwangmiao Formation in Penglai gas area. Results reveal a mixed sedimentary background of terrigenous debris and carbonate, with reservoirs predominantly situated in the middle and upper strata of the Longwangmiao Formation. The reservoir rock types are predominantly (residual) granular dolomite and crystalline dolomite. Main types of reservoir space include intergranular dissolved pores, intragranular dissolved pores, intercrystalline dissolved pores, and micro-fractures. The reservoir is characterized by low porosity and permeability, with thickness typically ranging between 10-42 m. Reservoir development is controlled by sequence stratigraphy, lithology and diagenesis, particularly evident in the granular dolomite and crystalline dolomite within the middle and upper sections of the progradational parasequence set. Key constructive diagenetic processes include atmospheric freshwater dissolution, oil and gas dissolution and fracture. A comparison with the Moxi-Gaoshiti area in the main area of Anyue gas field suggests similar controlling factors, primarily revolving around granular dolomite, dissolution and fracturing. Nonetheless, the Longwangmiao Formation reservoir in Penglai gas area exhibit distinctive traits such as high ash content, elevated terrigenous clastic content and limited penecontemporaneous exposure. Consequently, identifying high-energy granular dolomite and fine-grained dolomite exposed during the penecontemporaneous period, as well as dolomite modified by supergene karst, emerges as imperative in targeting reservoirs within the Penglai gas area.