Industry Odisha Bureau , April 16,: Since the Persian Gulf based Hormuz hurdle has triggered energy crisis following which gas supply has reportedly been squeezed, the Government of India (GoI) is said to be seriously considering not only to blend the Compressed Bio Gas (CBG) into the City Gas Distribution (CGD) networks, but also gradually increase it to well beyond five (05) per cent and eventually upto 20 per cent in a well-planned phased manner.
Sources revealed that the mandate for the CBG-CGD blending was one (01) per cent as of fiscal year (FY) 2026, while the gradual increase would be three (03) per cent in FY 2027, four (04) per cent in FY2028 and five (05) per cent in FY2029.
Since the Liquefied Petroleum Gas (LPG) is cooking gas and also used more by the industries, the acute shortage due to the Hormuz crisis has been compelling the GoI to switch over to more and more use of the piped gas distribution or CGD.
Keeping in view the imminent increase in the consumption load henceforth, the dire need for blending the CBG with CGD is being highly focused.
Notably, India reportedly depends on the Persian Gulf region for importing 40 per cent of requisite natural gas that is processed into piped natural gas (PNG) and Compressed Natural Gas (CNG) which are the fuels needed for cooking and automobile purposes respectively.
Also, need to be noted here that, India’s overall natural gas consumption (through piped CGD and CNG) is reportedly around 20 per cent, while the Petroleum and Natural Gas Regulatory Board (PNGRB) has reportedly assessed the consumption level rising to 34 per cent by 2040.
Sources revealed that the blending of CBG with CGD was voluntary till FY2025, whereas the blending mandate has reportedly been imposed this FY2026 onwards.
