Material Insights · Understanding the Material World

Biogas and biomethane: Trading

Who in India must now buy compressed biogas

What this tab covers How it is bought and sold: buyers and sellers, price benchmarks and who publishes them, exchanges, contract types, traders, how Indian buyers price it, recent price points, and good sources to follow.

Who buys, and where

  • City gas distributors and OMCs in India under the CBO
  • European gas suppliers and industry buying certificates
  • US fleets and CNG station operators

Who sells, and from where

  • Plant owners via grid injection or cascades
  • Certificate registries (guarantees of origin)

Price benchmarks

BenchmarkPublisherBasis
SATAT / CBG-CGD pool procurement priceGAIL / OMCsadministered, linked to CNG retail price
European biomethane certificate pricesArgus / national registriesper MWh, by subsidy status (indicative)
LCFS credit priceCARB / brokers$ per t CO2e

Exchanges

VenueContractNotes
none for physical biomethanenatural gas futures (TTF, Henry Hub) hedge the gas componentcredit markets are bilateral or broker-run

Contract types

  • Long-term offtake with OMCs and CGDs (India)
  • Grid injection tariffs or contracts for difference (EU)
  • Green gas certificates traded separately from the gas
  • RIN and LCFS credit sales (US)

Traders and distributors

  • Shell, BP, TotalEnergies, Engie, Vitol (indicative)
  • GAIL as India's CBG pool aggregator

How Indian buyers price it

  • GAIL buys CBG at 85% of the average CNG retail selling price (May 2025 revision)
  • CGD entities blend under the CBO and report quarterly to PPAC
  • GST on biogas and CBG plant equipment cut to 5%

Recent price points

DatePriceBasisSource
May 202585% of average CNG retail price; reference Rs 1,478 per MMBtuGAIL CBG procurement, IndiaRenewable Watch, 19 Dec 2025 (SATAT portal, IBA, GAIL data)
2025$36-108/MWhaverage world biomethane production costIEA Outlook for Biogas and Biomethane (May 2025), via World Biogas Association and BioCycle

Good sources to follow

European Biogas Association statisticsfreemium research site · EBA

European biogas and biomethane output, plants and policy

World Biogas Associationfree research site · WBA

global biogas policy and IEA summaries

Renewable Watchfreemium newsletter · Renewable Watch

Indian CBG, SATAT and renewable energy economics

BioCyclefreemium newsletter · BioCycle

anaerobic digestion, composting and organics recycling

BioEnergy Timesfree newsletter · BioEnergy Times

Indian CBG plant and policy news