Soochow Securities: Deep coalbed methane has entered the stage of large-scale development; focus on targets with core block development and diversified gas source layout.

Soochow Securities issued a research report stating that with the combination of policy, resources, and technology, deep coalbed methane has entered a stage of large-scale development. China's coalbed methane output in 2025 is approximately 18 billion cubic meters, and the bank expects China's coalbed methane output to exceed 26 billion cubic meters by 2030 (deep coalbed methane is expected to exceed 16 billion cubic meters). The bank expects that new supply and the recovery of damaged supply will still be limited in 2026-2027, and international gas prices will remain in a tight balance. High international gas prices will gradually transmit to the domestic market, and domestic gas sources will benefit from gas price elasticity. Attention should be paid to targets that control the development of core blocks of deep coalbed methane and have a diversified gas source layout.