Biogas contains more than 40% CO2 that can be removed to produce high quality CH4. Recently, CH4 production from CO2 methanation has been reported in several studies. In this study, CO2 methanation of biogas was performed over a 20 wt% Ni-Mg-Al catalyst, and the effects of CO2 conversion rate and CH4 selectivity were investigated as a function of CH4, O2, H2O, and N2 compositions of the biogas. At a gas hourly space velocity (GHSV) of 30,000/h, the CO2 conversion rate was ~79.3% with a CH4 selectivity of 95%. In addition, the effects of the reaction temperature (200–450 °C), GHSV (21,000–50,000/h), and H2/CO2 molar ratio (3–5) on the CO2 conversion rate and CH4 selectivity over the 20 wt% Ni-Mg-Al catalyst were evaluated. The characteristics of the catalyst were analyzed using Brunauer-Emmett-Teller (BET) surface area analysis, X-ray diffraction (XRD), X-ray photoelectron spectroscopy (XPS), and scanning electron microscopy (SEM). The catalyst was stable for approximately 200 h at a GHSV of 30,000/h and a reaction temperature of 350 °C. CO2 conversion and CH4 selectivity were maintained at 75% and 93%, respectively, and the catalyst was therefore concluded to exhibit stable activity.