CBG Sector Gets Major Boost as MoPNG Revises Procurement Price to Rs 1478/MMBTU

In a significant move to enhance the viability of the Compressed Biogas (CBG) sector, the Ministry of Petroleum and Natural Gas (MoPNG) has announced a revision in the CBG procurement price from Rs 1380/MMBTU to Rs 1478/MMBTU (excluding GST), effective from June 1 to October 31, 2025. Compression charges will remain unchanged at Rs 8/kg.

The CBG procurement price on a weight basis has been revised from approximately Rs 72.8/kg to Rs 77.4/kg (delivered up to 50 km, including compression charges of Rs 8/kg, excluding GST, at 95% methane content). Additionally, transportation support of Rs 1.5/kg for distances between 50–75 km and Rs 2.5/kg (excluding GST) for distances over 75 km enhances logistical support for producers.

Welcoming the move, the Indian Federation of Green Energy (IFGE) CBG Producer Forum said that this long-awaited revision addresses critical concerns about viability and cash flow, improving investor confidence and operational sustainability. 

“This price correction is a positive step that acknowledges the sector’s challenges,” said Y. B. Ramakrishna, Senior Vice President, IFGE & Chairman of the CBG Producer Forum. “We thank MoPNG and the Oil & Gas Marketing Companies (OGMCs) for responding to industry feedback. Revisions in the FOM/LFOM MDA and the Green Gas Certification Policy will be crucial to making the CBG industry sustainable.”

Ashish Kumar, Vice President of IFGE and Vice Chairman of the CBG Producer Forum, stressed the importance of price stability. “Institutionalising a systematic floor price review and correction process will strengthen the investment case for CBG. Greater participation from CGD companies and natural gas stakeholders will be key to the sector’s long-term success.”

Sanjay Ganjoo, Director General of IFGE, added, “This decision signals the government’s commitment to clean energy and circular economy goals. We look forward to continued policy evolution for sectoral growth.”

The IFGE CBG Producer Forum reaffirmed its commitment to working with all stakeholders to make India a global leader in green gas production and energy transition.