With the need to increase the use of renewable resources to reduce environmental impacts caused by greenhouse gases, there will be a global necessity for more intense use of renewable energy. In addition, given that a large part of energy in Latvia is imported, it is necessary to develop domestic energy supplies, thus ensuring self-suffi ciency and to reduce the dependence on external factors. One of the potential sources of renewable energy that could be used increasingly is biogas. Biogas production through anaerobic digestion is considered to be an optimal solution of different types of organic waste, converting these waste materials into renewable energy and organic fertilizer. However, the lack of existing effective biogas transmission and distribution network lead to the tendency to utilize the energy near the plant site often has low effi ciency, therefore cannot serve as a viable long term source of energy. In areas where large biogas plants are present and they account for a signifi cant share of primary energy also where natural gas transmission networks are nearby, a possible solution would be upgrading biogas to the required level, and then using it in mix with the natural gas. Before this process is carried out, the assessment of possible economic benefi ts must be done, as biogas plants are mostly decentralized with relatively low energy capacity. In this paper biogas and natural gas chemical differences are analyzed. Furthermore, the possibility of biogas usage combined with natural gas and the economic benefi ts of such a process in case of Latvia is discussed.