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India expands CBG scheme, allows pipeline injection to cut LNG dependence

New Delhi: The government has expanded and extended the Compressed Biogas (CBG)-City Gas Distribution synchronisation scheme until 2047, allowing CBG to be injected directly into the national gas pipeline network as part of efforts to strengthen energy security amid global supply concerns, Financial Express reported.

In a notification, the Ministry of Petroleum and Natural Gas said the scheme, first launched in 2021, will now include direct pipeline injection of CBG in line with revised guidelines issued in August 2025.

The move comes as India faces pressure on liquefied natural gas supplies, with nearly half of its imports coming from Qatar, amid ongoing tensions in West Asia.

Officials said the expanded scheme will help reduce reliance on imports by enabling cost-effective transport of CBG through pipelines, ensuring steady demand for producers, and lowering logistics costs while promoting uniform pricing.

At present, the government is prioritising gas supply for household and transport use, ensuring full availability for domestic PNG and CNG, while supply to industrial and commercial users is being regulated.

The policy also complements steps to boost PNG usage, with over 125,000 new connections activated across households, businesses and industries to reduce dependence on LPG and imported fuels.

Sujata Sharma said the situation is being closely monitored, noting that some consumers have already shifted from LPG to PNG. She added that while demand remains high, supply of LPG continues without disruption.The latest decision retains earlier guidelines but marks a shift towards integrating domestic clean fuels into the gas grid, as India looks to protect itself from global energy uncertainties.

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