India’s energy sector is at a pivotal stage as it transitions towards cleaner alternatives, with compressed biogas (CBG) and liquefied natural gas (LNG) expected to play a central role in driving the country’s gas sector growth over the next five to ten years. This projection was highlighted by Indraprastha Gas Limited (IGL) Executive Director, Mr. Sanjeev Bhatia, at the PHDCCI Global Summit on Sustainability 2025, where he underlined the importance of scaling up both production and infrastructure to achieve India’s ambitious energy targets.

Currently, natural gas contributes only 6.5% to India’s overall energy mix, far lower than the global average. The government has set a target to increase this share to 15% by 2030, making natural gas a key transition fuel in India’s clean energy journey. However, domestic gas production has not kept pace with rising demand, creating the need to diversify into alternative fuels like CBG and LNG.

One of the most significant developments is the government’s mandate requiring city gas distributors to invest in CBG plants. IGL has already committed to setting up at least 10 such units, with one in Narela, Delhi, scheduled to become operational by October 2025. This facility will generate around four tonnes of gas per day, using municipal waste as feedstock. Such initiatives not only address energy needs but also help manage the growing problem of urban waste, aligning with India’s broader sustainability goals.

When it comes to LNG adoption, the focus is primarily on the transport sector, where the potential is enormous. Mr. Bhatia pointed out that India currently has just 700 LNG-powered trucks, in stark contrast to China’s six lakh. Even a partial shift towards LNG adoption in heavy-duty vehicles could result in pollution reductions of up to 30%, significantly improving air quality in urban centres.

To support this transition, IGL and other gas companies plan to establish 50 LNG stations along the Golden Quadrilateral, one of India’s most critical highway networks. Additionally, industries such as cement, steel, and fertilisers are being encouraged to transition 10-20% of their fleets to LNG, reducing dependency on diesel and contributing to India’s decarbonisation targets.

Both CBG and LNG are seen as natural extensions of compressed natural gas (CNG), which is already well integrated into India’s transport ecosystem. Unlike hydrogen blending, which Mr. Bhatia described as commercially unviable at present, CBG and LNG offer scalable and sustainable pathways for immediate adoption.

At the same summit, International Solar Alliance (ISA) Director General, Mr. Ashish Khanna, emphasised India’s progress in renewable energy. Thanks to strong policy frameworks and private sector participation, India has become the only G20 country to achieve 50% renewable energy capacity ahead of schedule. With 116 gigawatts (GW) of solar power already installed, India’s commitment to clean energy is further underscored by its gas sector strategy.

The integration of CBG and LNG into India’s energy landscape will play a crucial role in addressing supply-demand gaps, reducing environmental pollution, and fostering sustainable growth. By linking waste management with energy production and expanding LNG adoption in transport and industry, India is not only diversifying its energy portfolio but also aligning with its broader climate commitments under the Paris Agreement.

In the next five years, the success of India’s gas sector will largely depend on how quickly these CBG plants and LNG stations are rolled out, how effectively industries adopt these cleaner fuels, and how well infrastructure challenges are addressed. If implemented at scale, the twin strategies of compressed biogas expansion and LNG adoption could help India not only achieve its energy security goals but also lead by example in global sustainable energy transitions.

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