Saudi National Gas Unit and Zamil Secure LPG Licences: What This Means for Business Growth and Investment Opportunities in Oman
Muscat: National Gas Company SAOG has announced that its wholly owned Saudi subsidiary, NGC Energy Saudi LLC, has secured liquefied petroleum gas (LPG) licences in partnership with Zamil Group, thereby expanding the Omani-listed company’s footprint in Saudi Arabia’s downstream gas sector.
The licences authorize the establishment of LPG cylinder filling and storage facilities in Jeddah and Jazan, alongside wholesale LPG distribution across Saudi Arabia, according to a company disclosure. The Saudi Ministry of Energy included the consortium of NGC Energy Saudi LLC and Zamil Group Holding Company among the winners of eight LPG filling, storage, and bulk distribution licences, awarded after a competitive tender process.
For National Gas, this development opens access to a significant consumer market in Saudi Arabia. The proposed cylinder filling plants will serve Jeddah and Jazan, two regions with a combined population of approximately 6.5 million. The company referenced Saudi Ministry of Energy projections that annual demand in these areas is expected to reach around 36.4 million LPG cylinders by 2030, based on a 21-litre cylinder size.
Development of these LPG facilities, including land acquisition and securing the necessary regulatory, civil defence, and compliance approvals, is anticipated to take about 24 months. The wholesale distribution licence enables the consortium to supply LPG throughout Saudi Arabia, a market with a population nearing 35 million.
National Gas projects that annual bulk LPG demand will reach approximately 676 million litres by 2030, with wholesale distribution operations expected to commence within about 12 months.
Additionally, National Gas has signed a memorandum of understanding with Zamil Group Investment Company, a subsidiary of Saudi Arabia’s Zamil Holding Group. The parties plan to finalize definitive agreements following regulatory approvals and customary conditions.
The company expects the licences to contribute positively to group revenue and profitability once commercial operations begin and will provide further updates according to Muscat Stock Exchange disclosure requirements as significant developments occur.
Special Analysis by Omanet | Navigate Oman’s Market
National Gas Company’s expansion into Saudi Arabia’s LPG downstream market represents a strategic move to tap into a vast consumer base of around 35 million people, with high growth potential driven by projected demand of 676 million litres by 2030. For Omani businesses and investors, this signals lucrative cross-border opportunities in energy trade and infrastructure development, but also demands careful navigation of regulatory and operational complexities in a competitive market. Smart investors should closely monitor the rollout timelines and partnership dynamics, as early positioning in these emerging facilities could yield significant long-term returns.
