Government to make CBG blending into natural gas mandatory

As part of the next set of blending programme, the Indian government is looking at making it mandatory for city gas distribution companies to blend compressed biogas (CBG) into natural gas and a strategy for the same has been deployed.

The petroleum ministry has started working on a strategy to start CBG blending into natural gas from the year 2025.

The government will also provide financial assistance for connecting pipelines from CBG plants to city gas distribution network. The government will bear 50 percent of the overall cost and the rest will be borne by city gas distribution companies.

Sources have informed that a Cabinet note is being prepared by the oil ministry for mandatory use of compressed biogas by the city gas distribution network. The government has set a target to blend CBG into natural gas that has already been announced in the recent Budget. The Oil Ministry’s target is of 5 percent CBG blending into natural gas by city gas distribution companies by 2027.

A separate Cabinet note is also being prepared for setting up pipeline connectivity from CBG plants to city gas distribution networks.

The government has also set a target to set up 100 CBG plants functional by end of this year and another 150 CBG plants will be given in-principle approval. City gas distribution companies will provide assured market for compressed biogas plants.