National Gas Company SAOG’s wholly owned Saudi subsidiary, NGC Energy Saudi LLC, has secured liquefied petroleum gas (LPG) licences in Saudi Arabia in partnership with Zamil Group Holding Company, marking a significant expansion for the Omani-listed firm in the Saudi downstream gas sector.

The licences, awarded by Saudi Arabia’s Ministry of Energy following a competitive tender process, permit the consortium to establish LPG cylinder filling and storage facilities in the cities of Jeddah and Jazan. In addition, the licences grant wholesale LPG distribution rights across the Kingdom.

National Gas highlighted the strategic importance of targeting Jeddah and Jazan, which collectively have a population of approximately 6.5 million. According to projections from the Saudi Ministry of Energy, annual LPG demand in these regions is expected to reach nearly 36.4 million cylinders by 2030, based on a standard 21-litre cylinder. The company intends to develop the filling and storage plants over the course of roughly 24 months, encompassing site selection and obtaining regulatory, civil defence, compliance, and other necessary approvals.

The wholesale distribution licence enables NGC Energy Saudi LLC and Zamil Group to cater to a broader market, covering Saudi Arabia’s population of around 35 million. The consortium anticipates that annual bulk LPG demand nationwide could approach 676 million litres by 2030. Wholesale distribution activities are slated to commence within about 12 months.

This development represents a strategic move by National Gas to deepen its footprint in Saudi Arabia’s energy sector, capitalizing on growing LPG consumption driven by population growth and industrial demand. The partnership with Zamil Group, a prominent Saudi conglomerate, underscores the local collaboration element favored by regulatory authorities in aligning with national energy goals.