India's CBG sector falls short of 3% sales target in the first half of FY 2026-27

Traders Union
All News
Commodities
CBG sales target for 2026-27

Highlights

From April to September 2026, 210 CBG plants sold 115.9 MMSCM of CBG, giving it a 1.7% share of the total CNG-DPNG market against a target of 3%.
The 210 operational plants are running at just 44% of installed capacity, while those with pipeline access are using 65-69% of their capacity.
There are no pipeline plans for 133 operational and 247 under-construction plants, constraining CBG offtake and production capacity.

This article was translated from the original. Read the original version by our correspondent here.

First-half performance and the target gap

As reported by PNGRB, citing the Petroleum and Natural Gas Regulatory Board, a total of 115.9 MMSCM of CBG, equivalent to 85,200 metric tonnes, was sold by 210 operational CBG plants from April to September 2026. Total CNG and DPNG sales during the same period stood at 6,800 MMSCM, putting CBG's share at 1.7%, against a target of 3% for the full FY 2026-27.

According to available data, full-year CNG and DPNG sales could reach 13,600 MMSCM, requiring CBG sales of 408 MMSCM to achieve a 3% share. This means an additional 292.1 MMSCM of CBG must be sold in the second half, following the first-half performance.

Average monthly CBG sales were 0.66 MMSCMD in April 2026, 0.64 in May, 0.68 in June, 0.66 in July, 0.64 in August and 0.7 in September. This trend suggests that achieving the target will require not only new sourcing but also greater offtake.

The top sellers accounted for 74% of total sales in the first half. Torrent Gas recorded the highest sales at 17.81 MMSCM, followed by BPCL at 13.51, Megha City Gas at 10.81, IGL at 10.61, IOCL at 7.03, Gail Gas at 6.89, ATGL at 6.14, Gail(India) at 4.87, Gujarat Energy at 4.25 and IMC Ltd at 3.91 MMSCM.

Pipeline connectivity and regional impact

The report states that the 210 operational plants are running at just 44% of their installed capacity. Plants with pipeline connections, or where connections are under construction, are operating at 65% to 69% of their design capacity, indicating that improved pipeline access boosts both gas offtake and plant utilization.

A major challenge for the sector is that there are currently no pipeline plans for 133 operational plants with a capacity of 1,661 TPD. In addition, 308 plants with a combined capacity of 2,908 TPD are under construction, and there are currently no pipeline plans for 247 of them.

According to the report, city gas distribution entities in major cities need to set clear targets for CBG and increase offtake from producers. This could boost domestic clean-fuel supplies, reduce dependence on imported natural gas and strengthen the circular economy by converting organic waste into energy.

Our previous report on PNGRB's new guidelines on the use of MLC (multilayer composite) pipes noted that under the revised regulations, the conditional use of MLC pipes is now permitted in city gas distribution networks up to the upstream side of consumer meters. The conditions include installation in accordance with ISO/IS standards, testing, third-party inspection, restrictions in sensitive areas, and brand-specific spares and maintenance, all intended to improve network safety and reliability.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.