Leak detection in transmission pipelines is important for safe operation of pipelines. The probability of leaks may be occurred at any time and location, therefore pipeline leak detection systems play a key role in minimization of the occurrence of leaks probability and their impacts. During the operation of the network there are various accidents or intentional actions that lead to leaks of gas pipelines. For each network failure, a quick reaction is needed before it causes more damage. Methods that are used to detect such network failures are three-staged-: early identification of leakage, an accurate indication of its location and determine the amount of lost fluid. Methods for leak detection can be divided into two main groups: external methods (hardware) and internal methods (software). External leak detection methods require additional, often expensive equipment mounted on the network, or use systems that could display only local damage on the pipeline. The alternative are the internal methods which use available network measurements and signalling gas leakage signal based on the mathematical models of the gas flow. In this paper, a new method of leak detection based on a mathematical model of gas flow in a transient state has been proposed.