Biogas and biomethane and Gas pipelines and city gas

Energy flows from biogas and biomethane to gas pipelines and city gas; their prices have moved together.

Biogas and biomethane (chemical) and Gas pipelines and city gas (energy): 2 relationships.

How they are linked

1. Energy flow

Physical flow · 20% of flow · Biogas and biomethane → Gas pipelines and city gas

Upgraded biomethane is injected into the natural gas grid.

• 20% of Biogas and biomethane's energy goes this way

2. Price link: grid injection

Cost and price · Strong · Both ways

Biomethane reaches users through gas grids, and delivered gas prices include network costs. The delivered gas index correlates at 0.15 for monthly moves but 0.79 for yearly moves, as utility tariffs adjust slowly to Henry Hub.

• 0.15 monthly change correlation
• 0.79 12-month change correlation
• 0.90 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.