GAIL (India) Limited has revised the pricing methodology for biogas and compressed biogas (CBG) under the CBG-CGD synchronisation scheme. These changes are based on the Ministry of Petroleum and Natural Gas’s (MoP&NG) guidelines for the supply of biogas/CBG, dated April 9, 2021. According to the revised methodology, the biogas procurement price is now calculated as 85 per cent of the average retail selling price (RSP) of compressed natural gas slabs, up from the earlier 80 per cent. This has been based on RSPs of GAIL’s own CGD entities, joint ventures, and subsidiaries across India.
In addition to the revised price calculation method, new transportation charges have been introduced for biogas supplied through cascade systems. Biogas producers will receive a fixed transportation fee per kilogram for one-way distances beyond 50 kms. No transportation charge will be paid for distances up to 50 kms, as this is included in the base procurement price. For distances above 50 kms and up to 75 kms, the charge will be Rs 1.5 per kg. For distances exceeding 75 km, Rs 2.5 per kg will be charged. These charges are to be paid by the beneficiary city gas distribution entity.
Furthermore, based on this revised methodology, the updated biogas price under the synchronisation scheme has now been fixed at Rs 1,478 per metric million British thermal unit (MMBTU), exclusive of GST, and will be applicable from June 1, 2025, to October 31, 2025. The floor price, however, remains unchanged at Rs 770 per MMBTU. No amendments have been proposed to other existing terms and conditions of the scheme. The decision has received approval from GAIL’s authority and has been shared with the MoP&NG for further review and guidance.
