In this work, ASPENplus was used to simulate biogas upgrading by sorption-enhanced methanation in a dual interconnected bubbling fluidized bed configuration using inexpensive, abundant, and eco-friendly CaO to remove H2O from the reaction environment. The chemical looping scheme consisted of two reactors: a methanator/hydrator, where the catalytic reactions occurred on a catalyst with 20% Ni supported on alumina as well as the steam removal by CaO, and a regenerator, where the Ca(OH)2 was dehydrated back to CaO. The simulations were carried out to identify possible reactant compositions (H2 and biogas), CaO amount, and the methanation temperature able to produce an outlet gas matching the specifications for direct grid injection. When considering a stoichiometric gas feed ratio at the methanator inlet, the unwanted CaO carbonation worsened the process performance, subtracting CO2 from the desired methanation reaction. However, optimal conditions were found with hydrogen-lean gas feedings, balancing the limited H2 amount with the capture of CO2 due to the sorbent carbonation. Thermodynamic considerations pointed out the possibility of solid carbon formation induced by sorption-enhanced methanation conditions, especially for H2 sub-stoichiometric feedings.