India plans mandatory blending of compressed biogas (CBG) in domestic compressed natural gas (CNG) and piped natural gas (PNG) to cut its reliance on expensive imports of LNG.
Blending will initially be voluntary at 1pc for automobiles and households from the April 2024-March 2025 fiscal year and become mandatory from 2025-26, the oil ministry said on 24 November. Natural gas is mostly used in India’s gas distribution network through PNG in households and CNG for automobiles.
The CBG blending obligation (CBO) will promote production and consumption of CBG in the country, oil and gas minister Hardeep Singh Puri said, adding that it will encourage investment of around 375bn rupees ($4.5bn) and help to establish 750 CBG projects by 2028-29. The CBO is to increase to 3pc during 2026-27 and to 4pc during 2027-28, after which it will rise to 5pc. A central repository body will monitor and implement the blending mandate based on operational guidelines approved by the oil minister.
The government last month launched its 12th city gas distribution bidding round offering areas in Jammu and Kashmir, Ladakh, Arunachal Pradesh, Meghalaya, Manipur, Nagaland and Sikkim states to connect to the natural gas pipeline network.
“At present about 23,500km-long gas pipeline network is under operation in the country and around 12,000km pipeline is approved/under construction,” Puri had said.
India had 300 city gas distribution networks under the Petroleum and Natural Gas Regulatory Board as of August, covering 88pc of the country’s geographical area and 98pc of the population.
The country has outlined plans to make India a gas-based economy, with the share of natural gas in its primary energy mix targeted to rise to 15pc by 2030 from around 6pc in 2022.
The government also aims to have 1pc sustainable aviation fuel (SAF) in jet fuel by 2027, which will double to 2pc in 2028, it said on 24 November. This would be done initially for international flights, as part of the country’s effort to achieve net zero by 2070. Delhi initially targeted to have 1pc SAF blending in jet fuel by 2025, saying it would need 140mn litres/yr.Share This