CBG–CGD Synchronisation Scheme extended till 2047

The central government has extended the Compressed Biogas (CBG)–City Gas Distribution (CGD) Synchronisation Scheme until December 31, 2047. The government has also broadened the scope of the scheme to allow direct injection of CBG into the national gas pipeline network. The move comes against the backdrop of growing concerns over global energy supply disruptions.

The decision by the Ministry of Petroleum and Natural Gas follows rising geopolitical tensions in West Asia that have put pressure on global LNG supplies. With India importing nearly 47% of its LNG from Qatar, ensuring energy security has become a critical policy focus.

As per the official notification, the revised framework incorporates pipeline injection of CBG in line with updated guidelines issued in August 2025. The extension of the scheme for over two decades underscores the government’s long-term commitment to integrating domestic, sustainable gas alternatives into the energy mix.

Officials noted that enabling pipeline-based transportation of CBG will help reduce logistics costs, ensure reliable offtake for producers, and support more uniform pricing. It is also expected to lower dependence on imported natural gas by strengthening domestic supply chains.

The policy shift is aligned with broader efforts to manage supply pressures in a tightening global gas market. The government has prioritised gas allocation for essential segments, ensuring uninterrupted supply for domestic PNG and transport CNG, while moderating supply to industrial and commercial users.

In parallel, demand-side measures have been stepped up, including the activation of more than 1.25 lakh PNG connections across residential, commercial, and industrial categories to optimise gas utilisation.

A senior ministry official, Sujata Sharma, stated that the situation is under close watch amid ongoing global disruptions. She added that despite elevated demand, LPG supply chains remain stable with no reported shortages.

The move reflects the government’s broader strategy to enhance energy resilience by promoting alternative fuels such as CBG and reducing vulnerability to global supply shocks.