Mahanagar Gas Limited (MGL) has signed a Memorandum of Understanding (MoU) with Organic Recycling Systems (ORSL) to explore opportunities in the compressed biogas (CBG) value chain across Maharashtra and Karnataka.

The agreement, announced on October 22, 2026, marks the city gas distribution company's entry into evaluating biogas ventures alongside a specialist in organic waste processing.

Scope of the partnership

Under the MoU, the two companies will focus on evaluating potential CBG projects that use agricultural waste, organic food waste, and other organic feedstocks. Beyond identifying suitable projects, the collaboration covers assessing project feasibility, techno-commercial viability, and project development, as well as examining potential CBG offtake arrangements.

The stated aim of the agreement is to combine Mahanagar Gas' expertise in city gas distribution with Organic Recycling Systems' capabilities in organic waste processing and CBG project development. Through the collaboration, the companies will explore commercially viable CBG projects and potential offtake opportunities in Maharashtra and Karnataka.

A non-binding framework

The MoU is non-binding and does not specify any consideration or definitive investment commitment from either party. According to the announcement, any future commercial arrangements, including engineering, procurement, and construction (EPC) contracts, will be subject to feasibility studies, due diligence, mutual agreement, requisite approvals, and definitive agreements, wherever applicable.

This structure leaves both companies free to walk away without financial obligation while establishing a framework for joint evaluation of the CBG opportunity in the two states.

Who is Mahanagar Gas?

Mahanagar Gas, established in 1995 with GAIL (India) as its promoter, is one of India's leading city gas distribution companies. The company pioneered natural gas distribution in Mumbai and its neighbouring areas, supplying compressed natural gas (CNG) to vehicles and piped natural gas (PNG) to domestic, commercial, and industrial consumers.

MGL operates across the Mumbai Metropolitan Region and adjoining areas, including Raigad, and focuses on providing safe, reliable, and cleaner energy solutions. The MoU with ORSL represents an exploration of adjacent opportunities within the broader gas value chain, building on the company's established distribution footprint.

Who is Organic Recycling Systems?

Organic Recycling Systems is an engineering and technology company focused on sustainable waste management and renewable energy solutions. The company develops and implements waste-to-energy projects, particularly in the municipal solid waste (MSW) segment, and provides solutions for waste processing, recycling, and resource recovery.

Its offerings include anaerobic digestion systems, biogas plants, and waste-to-energy technologies that convert organic waste into renewable energy and reusable resources. ORSL also undertakes the construction, development, and maintenance of waste-to-energy projects and enters into EPC contracts for such projects, experience that positions it to handle the technical side of any future CBG ventures arising from the partnership.

What comes next

As the MoU stands, no project sites, investment amounts, or timelines have been committed. The immediate work under the agreement involves feasibility and techno-commercial assessments of potential CBG projects using agricultural and organic waste feedstocks in Maharashtra and Karnataka, along with preliminary examination of off-take possibilities.

Any concrete outcomes, whether in the form of project development or EPC contracts, would require further approvals and definitive agreements between the two parties before proceeding.

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