India targets 3% CBG blending by end of financial year
1.7% blending achieved in first six months; pipeline connectivity crucial to meet target
By Capital Kranti desk, Gandhinagar · Editor: Parth Thakkar
6 November 2026, 4:10 am · 2 min read
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According to the Petroleum and Natural Gas Regulatory Board (PNGRB), India has achieved 1.7% blending of Compressed Bio-Gas (CBG) with Domestic Piped Natural Gas (D-PNG) and Vehicular Compressed Natural Gas (CNG) in the first six months of the current financial year. However, to meet the 3% target set by the government, it will be necessary to accelerate sales in the second half of the year.
According to a report by The Hindu, the sale of CBG during the April to September period stood at 115.9 million standard cubic metres (MMSCM), while the combined sale of CNG and D-PNG was recorded at 6,800 MMSCM. The combined consumption of these two fuels for the entire financial year is estimated to be 13,600 MMSCM. Under these circumstances, to achieve the 3% blending target, CBG sales must increase to 408 MMSCM, meaning an additional 292.1 MMSCM will be required over the volume of the first six months.
Regarding future targets, the Government of India has set a blending target of 4% for 2027-28 and 5% for the subsequent financial year.
The PNGRB has expressed concern over the lack of infrastructure and emphasised that connecting CBG plants with gas pipelines is indispensable. This will ensure the procurement of gas and allow for better utilisation of established capacity. There are currently 210 operational CBG plants in the country, but their average capacity utilisation is only 44%. More concerning is that out of 308 plants currently under construction, 247 plants have no plan for pipeline connectivity.
The regulator noted that reliable pipeline connections provide plants with a buyer every day of the year. Plants that have pipelines or where construction is underway are utilising about 65-69% of their rated capacity. Increased pipeline access will improve gas offtake and the overall utilisation of each plant.
Additionally, the regulator has called upon large entities to set their own CBG blending targets, increase procurement from independent producers, and invest in establishing their own captive CBG plants.
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