Many algorithms and numerical methods, such as implicit and explicit finite differences and the method of characteristics, have been applied for transient flow in gas pipelines. From a computational point of view, the state space model is an effective method for solving complex transient problems in pipelines. However, the impulse output of the existing models is not the actual behavior of the pipeline. In this paper, a new lumped parameter model is proposed to describe the inertial nature of pipelines with inlet/outlet pressure and flow rate as outer variables in the state space. Starting from the basic mechanistic partial differential equations of the general one-dimensional compressible gas flow dynamics under isothermal conditions, the transfer functions are first acquired as the fundamental work. With Taylor-expansion and a transformation procedure, the inertia state space models are derived with proper simplification. Finally, three examples are used to illustrate the effectiveness of the proposed model. With the model, a real-time automatic scheduling scheme of the natural gas pipeline could be possible in the future.