Gujarat Energy Plans 200 TPD Compressed Biogas Capacity; Invites Partners for Joint Venture

Gandhinagar: Gujarat Energy Limited (GEL), India’s largest city gas distribution company by sales volume, plans to establish 200 tonnes per day (TPD) of compressed biogas (CBG) production capacity in its initial phase. This will include a 100 TPD facility in Gujarat and another 100 TPD outside the state, as it seeks to diversify gas sourcing and reduce dependence on imported liquefied natural gas (LNG).

The Gujarat government-owned company has issued an expression of interest (EOI) inviting joint venture (JV) partners to develop and operate CBG plants under an initiative involving an estimated investment of ₹100 crore.

Under the proposed arrangement, GEL will hold a 49% equity stake in the JV companies, with selected partners owning the remaining 51%. Individual plants will have capacities of 10–20 TPD, depending on feedstock availability, and will be located within GEL’s city gas distribution (CGD) geographical areas or near the Gujarat Integrated Gas Limited (GIGL) natural gas pipeline network.

GEL’s priority locations in Gujarat include Ahmedabad, Gandhinagar, Surat, Bharuch, Valsad, Rajkot, Jamnagar, Bhavnagar and other districts. Outside the state, the identified areas span Madhya Pradesh, Rajasthan, Maharashtra, Punjab and Haryana, including locations such as Indore, Ujjain, Thane, Amritsar and Bathinda.

The JV partners will be responsible for technology, plant construction, feedstock sourcing and supply, and 20-year operations and maintenance. They will also ensure the offtake of fermented organic manure (FOM) produced by the plants. GEL, meanwhile, will facilitate CBG offtake through its CGD network or the GIGL pipeline.

The initiative aligns with the Centre’s GOBARDHAN scheme and the Compressed Biogas Blending Obligation applicable to the CGD sector. GEL has invited applications from eligible partners by December 15, 2026, with the proposed plants aimed at supporting its CBG blending requirements and strengthening its energy sourcing portfolio.

DeshGujarat