National Gas Saudi unit, Zamil win LPG licences
Muscat: said its wholly owned Saudi subsidiary, NGC Energy Saudi LLC, has secured liquefied petroleum gas (LPG) licences in partnership with Zamil Group, expanding the Omani-listed company’s presence in Saudi Arabia’s downstream gas market.
The licences cover the establishment of LPG cylinder filling and storage facilities in Jeddah and Jazan, as well as wholesale LPG distribution to consumers across Saudi Arabia, National Gas said in a disclosure.Saudi Arabia’s Ministry of Energy named a consortium comprising NGC Energy Saudi LLC and Zamil Group Holding Company among the winners of eight LPG filling, storage and bulk distribution licences, following a tender and bid assessment process.
For National Gas, the award provides access to a major Saudi consumer market.
The proposed cylinder facilities will target Jeddah and Jazan, two high-demand regions with a combined population of about 6.5 million, according to the company. Citing Saudi Ministry of Energy projections, National Gas said annual demand in the two markets is expected to reach around 36.4 million LPG cylinders by 2030, based on a 21-litre cylinder size.
The company said development of the proposed LPG facilities, including identifying suitable land for two plants and securing regulatory, civil defence, compliance and other statutory approvals, is expected to take around 24 months. The wholesale distribution licence gives the consortium scope to distribute LPG to consumers across Saudi Arabia, which National Gas described as a national market of around 35 million people.
The company said projected annual bulk LPG demand is expected to reach around 676 million litres by 2030, with wholesale distribution operations expected to begin within about 12 months.
National Gas said it has signed a memorandum of understanding with Zamil Group Investment Company, part of Saudi Arabia’s Zamil Holding Group. The parties intend to enter into definitive agreements after obtaining the required regulatory approvals and meeting customary conditions.
The company said the licences are expected to contribute to group revenue and profitability after the start of commercial operations. It added that further announcements would be made in line with Muscat Stock Exchange disclosure requirements when material developments occur.
