Abstract: Underground coal gasification is one the coal exploitations in the world. As early as 1979, the World Coal Vision Conference, the United Nations had already clearly put forward that the implementation of underground coal gasification and mining is an important way used to solve the problems that exist in the traditional coal mining and utilization. This paper discusses the potentials of the deep seated coal resources in Panjin city, introduces the exploitation technology of coal bed methane at home and abroad, provides the directions and methods of the underground coal gasification pilots in lacal areas.