The ability to liquefy natural gas has revolutionized the global energy trade, and this capability is now being applied to methane derived from coal resources. The conversion of coal based methane to LNG is a significant value-adding step, allowing this resource to be transported economically to markets worldwide. This application is a major growth vector for the Coal Based Methane Market , turning stranded gas into a globally tradeable commodity.

The process of converting CBM to LNG mirrors that of conventional natural gas liquefaction but with a dedicated upstream focus. The gas, typically from Coal Bed Methane (CBM) fields, is first gathered and treated to remove water, acid gases, and other impurities. It is then cooled to approximately -162°C to become a liquid, shrinking its volume by a factor of about 600 for efficient transport. A prominent example of this is the Gladstone LNG (GLNG) project in Australia. This large-scale operation produces LNG from CBM extracted from over 3,900 wells across four fields in Queensland, which is then transported via a 400 km pipeline to a two-train LNG facility with a combined capacity of 7.8 million tonnes per annum (Mtpa) .

The economics of coal based methane to LNG are compelling, particularly in regions with abundant coal resources and growing energy demand. The feasibility of such projects is supported by mature, integrated technologies for both gas extraction and liquefaction. Analysis from a pre-feasibility study for a CBM-to-LNG plant in Indonesia, for example, indicated a viable project with a payback period of 3.09 years and an Internal Rate of Return (IRR) of 28.4% . The strategic advantage of converting this resource into LNG is that it connects inland coal basins to international energy markets, providing energy security to importing nations and a profitable export revenue stream for producing countries. As the technology for small and mid-scale liquefaction advances, coal based methane to LNG projects are likely to become even more prevalent .

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