Govt Considers Raising CBG Blending In City Gas Networks

New Delhi, Apr 16 (KNN) The government is considering a significant increase in the blending of compressed biogas (CBG) in city gas distribution networks as it looks to address supply constraints arising from the ongoing West Asia conflict.
 
Existing Targets for CBG Blending
 
India currently mandates a 1 percent blending of CBG in piped natural gas (PNG) and compressed natural gas (CNG) for FY26, with targets set to rise gradually to 3 percent, 4 percent and 5 percent over the next three financial years.
 
However, policymakers are now evaluating a sharper increase in blending levels, potentially up to 20 percent in a phased manner, to reduce dependence on imported liquefied natural gas (LNG) and strengthen domestic energy security.
 
The move comes against the backdrop of disruptions in global energy supplies due to the West Asia conflict, with India relying on the region for nearly 40 percent of its natural gas imports.
 
CBG as a Cleaner Domestic Alternative
 
Compressed biogas, produced from organic waste such as agricultural residue, municipal waste and sewage, is being positioned as a cleaner and domestically available alternative to conventional natural gas. It has similar properties to CNG and can be blended into existing city gas infrastructure.
 
Officials indicated that the government is prioritising essential sectors such as households, fertiliser units and healthcare for gas allocation, while also pushing for increased adoption of PNG amid a shortage of liquefied petroleum gas (LPG).
 
The policy push is part of a broader effort to scale up domestic CBG production and reduce exposure to global supply shocks. Industry experts noted that achieving higher blending targets would require a significant ramp-up in production capacity and supportive policy measures.
 
City Gas Network as Key Distribution Channel
 
City gas distribution currently accounts for about 20 percent of India’s total natural gas consumption and is expected to expand further in the coming years, making it a key channel for integrating alternative fuels such as CBG.
 
The government is also working on streamlining existing biogas programmes and developing a unified framework to boost production and adoption, similar to the roadmap implemented for ethanol blending in fuels.
 
The proposed increase in CBG blending underscores India’s broader strategy to enhance energy resilience, diversify fuel sources, and reduce import dependence amid an uncertain global energy environment.
 
(KNN Bureau)