CBG blending at 1.7% in H1; pipeline connectivity key to achieving 3% target

India achieved 1.7% blending of compressed biogas (CBG) with domestic piped natural gas (D-PNG) and vehicular compressed natural gas (CNG) in the first half of the current fiscal, but will need an acceleration in sales during the second half to meet the mandated 3% target, according to the Petroleum and Natural Gas Regulatory Board (PNGRB).

The country has set a blending target of 4% for 2027-28, rising to 5% in the subsequent fiscal.

CBG sales stood at 115.9 million standard cubic metres (MMSCM) during the April-September period, against combined CNG and D-PNG sales of 6,800 MMSCM. With the combined consumption of the two fuels projected at 13,600 MMSCM for the full fiscal, CBG sales will have to rise to 408 MMSCM to achieve the 3% blending target, requiring an additional 292.1 MMSCM over the first-half volume.

Pipeline connectivity crucial

Flagging infrastructure gaps, PNGRB stressed the need to connect CBG plants to gas pipelines to ensure assured offtake and better utilisation of installed capacity.

Of the 210 functional CBG plants in the country, capacity utilisation averages just 44%. More significantly, 247 of the 308 plants under construction currently have no plans for pipeline connectivity.

“A reliable pipeline connection gives CBG plant a buyer every day of the year. Plants with a pipeline, or one being built, use 65-69% of their designed capacity. Better pipeline access means better gas offtake and overall use of every plant,” it said.

Besides expanding pipeline infrastructure, the regulator called on larger entities to establish their own CBG blending targets, increase procurement from independent producers and invest in setting up captive CBG plants.