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In order to meet increasingly stringent emission regulations and reduce fuel consumption, development of modern powertrain is becoming more complicated, combining many advanced technologies. Gasoline engine downsizing is already established as a proven technology to reduce vehicle fleet CO2 emissions. Compressed natural gas (CNG) offers increased potential to further reduce both tailpipe CO2 and other regulated exhaust gas emissions without compromising driving performance. In this study, a turbocharged CNG port fuel injection (PFI) engine was developed based on gasoline version. Making most use of positive fuel properties of CNG, the paper quantifies the performance characteristics of downsized CNG engine considering reduced knock sensitivity, adaption of compression ratio and combustion efficiency. While peak cylinder pressure was controlled below 120 bar, peak torque 180Nm, same level as gasoline variant, was realized from 3000rpm.