Methane from coal sources or CBM - Coal Bed Methane (also known as CSM - Coal Seam Methane, or CSG - Coal Seam Gas), formed naturally in coal reserves. CBM contains less carbon dioxide and more methane, in which are cheaper to process, have more fuel efficient power and emit fewer pollutants compared with natural gas and other options.

CBM methane content is the main elements that produce liquefied natural gas (LNG), but CBM can also be used to produce compressed natural gas (CNG), which is an alternative to gasoline and dimethyl ether (DME), which hydrocarbon fuel with less pollution.

Economically producible CBM are usually found at depths between 300 to 1000 meter. Shallow depth makes CBM suitable for cheaper and simpler drilling technologies. The nature of CBM industry are very different from conventional oil and gas in which we are looking for a coal formation with good gas content instead of a hydrocarbon trap. This nature requires different sets of approach and regulations from the government.

From the existing working areas, CBM potential reserves in Indonesia is estimated at 138.4 TCF, larger than the natural gas proven reserves in Indonesia.

The gas resources produced from CBM showed promising expectations in supporting the fulfilment of transportation fuel, local industry needs as well as the nation electricity requirements which continues to increase in line with Indonesia economic growth.