The companies have unveiled a US $5 billion plan to boost gas production from India’s KG-D6 block.

State-run Coal India Ltd., the world’s largest coal producer, is turning its attention to extracting coalbed methane from its vast number of coal mines in India.

China recently awarded its second batch of shale gas blocks as part of its ongoing strategy to kick-start this emerging unconventional resource and exploit the potentially huge reserves – although numerous challenges remain to be overcome before it can achieve its dream of mirroring the US shale boom.

Concerned over the slow pace of development, India’s federal government is preparing a new set of rules for exploration and development of its coalbed methane blocks.

Unconventional gas is becoming increasingly popular across the Asia-Pacific region as an emerging energy resource, and the development of the region’s significant coal bed methane reserves could go someway towards meeting rising energy demands from regional big hitters like China and India.