CBM is found in coal deposits and is held in place by underground water pressure

CBM is extracted by drilling to the coal seam, fracturing and de-watering to create a pressure differential releasing methane

Huge CBM resources - China ranks third in World CBM resources after Canada and Russia

Chinese clean energy policy switching from coal to gas

New power stations gas-fired (40% of installed capacity idle due to lack of gas supply)

CBM price deregulated by State Council action