Market for gas

China’s CBM industry is at the commercial development stage, driven by strong demand and high sales prices.

Research started in the country in the mid-1980s, encouraged by rapid CBM development in the United States, It included feasibility studies, resource assessments and technology development. Exploration drilling started in the early 1990s, supported by the United Nations Development Programme. Testing and development began with pilot projects in the Jincheng, Liulin and Fuxin mining areas, followed by commercial production from the middle of the decade, with early entrants including PetroChina, CUCBM and Jincheng Anthracite Mining Group.

In September 2013, China’s State Council released guidelines to facilitate the nation’s extraction and utilisation of CBM, specifying that the subsidy for CBM development will be further raised and pricing for CBM will become more market-oriented, together with the introduction of favourable value-added tax policies to promote the comprehensive utilisation of coal resources and to further encourage power generation from CBM.