Govt Extends CBG-CGD Scheme Till 2047, Allows Pipeline Injection Of Biogas

New Delhi, Mar 21 (KNN) The government has extended the Compressed Biogas (CBG)–City Gas Distribution (CGD) Synchronisation Scheme till December 2047 and expanded its scope to allow direct injection of CBG into the national gas pipeline network, amid concerns over global energy supply disruptions.

The move by the Ministry of Petroleum and Natural Gas comes as geopolitical tensions in West Asia strain global LNG supplies. India currently sources nearly 47 percent of its LNG imports from Qatar, making energy security a key policy priority.

According to an official notification, the revised scheme will now include pipeline injection of compressed biogas in line with updated guidelines issued in August 2025. The extension till December 31, 2047 signals a long-term push towards integrating domestic gas alternatives into the energy mix.

Officials said the expanded framework will enable cost-effective transportation of CBG through pipelines, ensure assured offtake for producers, reduce logistics costs and promote uniform pricing, while lowering dependence on imported natural gas.

The decision also aligns with efforts to manage supply amid tightening global gas markets. The government is currently prioritising gas allocation to essential segments, ensuring full supply for domestic PNG and transport CNG, while supply to industrial and commercial users is being moderated.

To further reduce reliance on imported fuels, demand-side interventions have been intensified, including the activation of over 1.25 lakh PNG connections across domestic, commercial and industrial consumers.

A senior official in the ministry, Sujata Sharma, said the situation is being closely monitored amid ongoing disruptions. She noted that while demand remains elevated, LPG supply chains continue to function normally, with no reported shortages.

The latest policy move reflects a broader strategy to strengthen domestic energy resilience by promoting alternative fuels such as CBG and reducing exposure to global supply shocks.

(KNN Bureau)