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The best sealant for gas pipes is usually a pipe joint compound, or pipe dope. It creates a durable, leak-proof seal that is resistant to high pressure and vibrations, and it doesn’t break down like tape can. Yellow Teflon tape, or PTFE tape, can also be a good option and is a safe and reliable sealant for gas pipes when you or a pro apply it correctly.

No, you shouldn't cap a gas pipe with a compression fitting because they aren't designed for gas lines and can pose serious safety risks. Gas pipes require threaded caps that create a secure, leak-proof seal capable of handling gas pressure. Using a compression fitting could lead to dangerous gas leaks—a hazard you definitely want to avoid. 

Temporarily capping a gas line—for renovations or during travel—doesn’t require a permit. If you plan to remove a gas line and cap it completely, you’ll need to apply and pay for one through your town or city. Depending on your region and its local codes, you may pay between $25 and $100. To avoid a gas leak or other hazards, some cities take the job of permanently adjusting or capping a gas line out of the hands of homeowners. Instead, they require hiring a professional gas plumber.  

Almost all new buildings in California need an earthquake shut-off valve. The requirements for an earthquake gas shut-off valve (and who can install it) depend on where you live. For example, according to the Los Angeles Municipal Code, you’re required to hire a licensed contractor to install one whenever you build, sell, or renovate a home. Check with your local building department for your city’s laws on installing, permitting, and inspecting earthquake shut-off valves.