In recent years, significant progress and breakthroughs have been made in the exploration of conventional and unconventional natural gas in the Lower Cambrian petroleum system in the Sichuan Basin in Central China, showing excellent exploration prospects. However, detailed evaluation of the Qiongzhusi shale, the main source rocks in the Lower Cambrian petroleum system, including their hydrocarbon generation and expulsion characteristics, is lacking, even though such evaluation is critical for understanding conventional and unconventional natural gas resource potential. To investigate the geological and geochemical characteristics of the Qiongzhusi shale, experiments including pyrolysis, total organic carbon (TOC), vitrinite reflectance (Ro), gas chromatography (GC) and gas chromatography–mass spectrometry (GC–MS) were conducted. Based on modeling work and fluid inclusion analysis, the hydrocarbon generation and expulsion characteristics of the Qiongzhusi shale and their control on hydrocarbon accumulation was analyzed, and the conventional and unconventional natural gas resource potential of the Lower Cambrian petroleum system was systematically evaluated. The results indicate that the organic matter of the Qiongzhusi shale is mainly derived from bacteria and algae deposited in a saline, reducing marine environment. The shale is predominantly composed of type I kerogen with an average TOC value of 1.85 wt%, and is widely distributed in the basin with an average thickness of 212.7 m. The Qiongzhusi shale is primarily post-mature with an average vitrinite reflectance (Ro) of 2.53%. Modeling work suggests the Qiongzhusi shale reached the hydrocarbon expulsion threshold (HET) at Ro = 0.9%, and the main hydrocarbon expulsion stages are Triassic, Jurassic, and Cretaceous. The maximum hydrocarbon generation and expulsion intensities at present day are 32 × 10 6 t/km 2 and 18 × 10 6 t/km 2 , respectively. The conventional natural gas resource potential of the Longwangmiao Formation derived from the Qiongzhusi shale is estimated to be between 9.51 × 10 12 m 3 and 19.03 × 10 12 m 3 . The unconventional shale gas resource potential of the Qiongzhusi shale is predicted to be 1.4 × 10 12 m 3 , showing significant prospects for natural gas exploration. • Geochemistry characteristics of the Qiongzhusi Formation were systemically evaluated. • Hydrocarbon generation and expulsion characteristics of the Qiongzhusi Formation were first analyzed. • Conventional and unconventional natural gas resource potentials of ancient Lower-Cambrian petroleum system were calculated.