This paper proposes a time-space domain correlation-based method for gas leakage detection and location. It acquires the propagated signal on the skin of the plate by using a piezoelectric acoustic emission (AE) sensor array. The signal generated from the gas leakage hole (which diameter is less than 2 mm) is time continuous. By collecting and analyzing signals from different sensors' positions in the array, the correlation among those signals in the time-space domain can be achieved. Then, the directional relationship between the sensor array and the leakage source can be calculated. The method successfully solves the real-time orientation problem of continuous ultrasonic signals generated from leakage sources (the orientation time is about 15 s once), and acquires high accuracy location information of leakage sources by the combination of multiple sets of orientation results. According to the experimental results, the mean value of the location absolute error is 5.83 mm on a one square meter plate, and the maximum location error is generally within a ±10 mm interval. Meanwhile, the error variance is less than 20.17.