Arrow Energy, one of Australia's leading producers of coal bed methane, has recently signed a 100 million contract with a prospecting team of the Xinjiang Geology and Mining Bureau on jointly prospecting and exploiting coal bed methane resources in southern and northern Juggar Basin, Xinjiang, northwest China.
Both sides will set up a coal bed methane cooperative company and an initial investment of three million yuan will be dropped to an experimental exploitation of a well in southern Juggar coalfield.

The cooperative company will focus on prospecting coal bed methane for coalmines of the eastern Juggar power, coal and chemical production base to ensure the safety of coal mining. Meanwhile it will prospect and develop coal bed methane resource in southern Juggar coal field.

Xinjiang Uygur Autonomous Region in northwestern China is rich in coal bed methane, with reserve predicted at 6.8 trillion cubic meters, making up 22 percent of the national total.

China is on the way to accelerate development of coal bed methane in a hope of cut accidents of coalmines, reduce emission of greenhouse gas and increase energy supply.