Coal swelling/shrinkage during gas adsorption/desorption is a well-known phenomenon. For some coals the swelling/shrinkage shows strong anisotropy, with more swelling in the direction perpendicular to the bedding than that parallel to the bedding. Experimental measurements performed in this work on an Australian coal found strong anisotropic swelling behaviour in gases including nitrogen, methane and carbon dioxide, with swelling in the direction perpendicular to the bedding almost double that parallel to the bedding. It is proposed here that this anisotropy is caused by anisotropy in the coal's mechanical properties and matrix structure. The Pan and Connell coal swelling model, which applies an energy balance approach where the surface energy change caused by adsorption is equal to the elastic energy change of the coal solid, is further developed to describe the anisotropic swelling behaviour incorporating coal property and structure anisotropy. The developed anisotropic swelling model is able to accurately describe the experimental data mentioned above, with one set of parameters to describe the coal's properties and matrix structure and three gas adsorption isotherms. This developed model is also applied to describe anisotropic swelling measurements from the literature where the model was found to provide excellent agreement with the measurement. The anisotropic coal swelling model is also applied to an anisotropic permeability model to describe permeability behaviour for primary and enhanced coalbed methane recovery. It was found that the permeability calculation applying anisotropic coal swelling differs significantly to the permeability calculated using isotropic volumetric coal swelling strain. This demonstrates that for coals with strong anisotropic swelling, anisotropic swelling and permeability models should be applied to more accurately describe coal permeability behaviour for both primary and enhanced coalbed methane recovery processes. (C) 2010 Elsevier B.V. All rights reserved.