National Gas Saudi Unit and Zamil Secure LPG Licences: What This Means for Investment Opportunities in Oman’s Energy Sector
National Gas Company SAOG Strengthens Presence in Saudi Arabia Through LPG Licences
MUSCAT, JUNE 14 — National Gas Company SAOG has announced that its wholly owned Saudi subsidiary, NGC Energy Saudi LLC, in partnership with Zamil Group, has secured liquefied petroleum gas (LPG) licences. This strategic move enhances the Omani-listed company’s footprint in the downstream gas market of Saudi Arabia.
The licences authorize the establishment of LPG cylinder filling and storage facilities in the key regions of Jeddah and Jazan, alongside wholesale LPG distribution across Saudi Arabia. These licences were awarded by Saudi Arabia’s Ministry of Energy to a consortium formed by NGC Energy Saudi LLC and Zamil Group Holding Company, following a comprehensive tender and bid evaluation process.
This development grants National Gas access to a significant consumer market within Saudi Arabia. The planned cylinder filling plants will serve Jeddah and Jazan, which collectively have a population of approximately 6.5 million. According to projections from the Saudi Ministry of Energy, demand in these areas is expected to reach about 36.4 million LPG cylinders annually by 2030, based on the standard 21-litre cylinder.
The company anticipates that the development phase, including land identification, regulatory approvals, civil defense clearances, and compliance procedures, will require roughly 24 months. The wholesale distribution licence enables the consortium to supply LPG to consumers nationwide, tapping into a broader market of about 35 million people.
National Gas projects that annual bulk LPG demand across Saudi Arabia will reach approximately 676 million litres by 2030. The company aims to commence wholesale distribution operations within approximately 12 months.
Additionally, National Gas has signed a memorandum of understanding with Zamil Group Investment Company, part of the Saudi Zamil Holding Group. The parties plan to finalize definitive agreements following the acquisition of necessary regulatory approvals and satisfaction of customary conditions.
The company expects these licences to contribute positively to its group revenue and profitability once commercial operations begin. Further updates will be communicated in accordance with Muscat Stock Exchange disclosure requirements as material developments arise.
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National Gas Company SAOG’s expansion into Saudi Arabia’s lucrative LPG downstream market represents a strategic regional growth opportunity. With strong demand projections and key partnerships like Zamil Group, Omani businesses can leverage cross-border collaborations to tap into Gulf markets. Smart investors should monitor regulatory progress and operational milestones, as early involvement in infrastructure development could yield significant returns in this rapidly expanding energy segment.
