Apr 16 (BNP): India is accelerating the integration of compressed biogas (CBG) into city gas distribution (CGD) networks as global Liquefied Natural Gas (LNG) supplies tighten amid ongoing geopolitical tensions in West Asia. The move reflects a broader push to strengthen domestic energy security and reduce dependence on imported natural gas.
The government has shifted from a voluntary adoption model to a structured mandate under the Compressed Biogas Obligation (CBO). As per the phased rollout, CBG blending in compressed natural gas (CNG) and piped natural gas (PNG) will begin at 1% in FY 2025–26 and gradually increase to 5% by FY 2028–29.
The policy push comes at a time when India imports nearly half of its natural gas requirements, making it vulnerable to global price volatility and supply disruptions. The recent LNG supply crunch has further reinforced the urgency to diversify into domestic renewable fuel sources.
To support large-scale adoption, the Union Budget 2026–27 has removed central excise duty on the green component of blended CNG, improving cost efficiency and enhancing the financial viability of compressed biogas production. The move is expected to encourage greater private investment in the sector.
Infrastructure expansion is also gathering momentum, with around 170 compressed biogas plants currently operational and more than 300 additional plants under construction. These developments are being supported through policy frameworks that aim to strengthen linkages between biomass collection systems and city gas networks.
The programme is designed to convert agricultural residue, organic waste, and sewage into usable clean fuel, offering both environmental and economic benefits while reducing waste disposal challenges.
Officials believe the structured expansion of biogas blending will play a key role in reducing import dependence, supporting rural income generation, and advancing India’s long-term goal of achieving net-zero emissions by 2070.
