CBG Blending Obligation (CBO) will be voluntary till FY 2024-2025 and mandatory blending obligation would start from FY 2025-26 said Rameswar Teli, Minister of State in the Ministry of Petroleum and Natural Gas in a written reply in Lok Sabha. 

CBO shall be kept as 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5%.

These steps would help in enhancing the availability of Compressed Bio Gas (CBG) in the country for promoting a gas based and circular economy, saving of forex and achieving the target of net zero emission.

Government has launched “Sustainable Alternative Towards Affordable Transportation (SATAT)” initiative on 1st October 2018, with the aim of establishing an ecosystem for production of CBG from various waste/biomass sources and for promoting its use along with Natural Gas.

Under this initiative Oil and Gas Marketing Companies (OGMCs) invites Expression of Interest (EOI) to procure CBG from potential entrepreneurs. As on 01.11.2023, fifty CBG projects have been commissioned under the SATAT initiative.

Further, Government has issued guidelines for co-mingling of domestic gas for supply for Compressed Natural Gas (Transport) & Piped Natural Gas (Domestic) segments of City Gas Distribution (CGD) Networks for synchronization of CBG with CNG in CGD Network.

In order to promote the production and consumption of CBG in the country, the National Biofuels Coordination Committee (NBCC) on 24.11.2023 approved the introduction of phase wise mandatory blending of CBG in CNG (Transport) & PNG (Domestic) segments of the CGD sector.