Prime Highlights
- Saudi Arabia awarded eight licences for LPG filling, storage and wholesale distribution projects.
- The programme aims to expand energy infrastructure and increase private-sector participation.
Key Facts
- Unigaz Arabia secured facilities in Riyadh, Hail and Al Ahsa, along with a nationwide distribution licence.
- A consortium of NGC Energy Saudi and Zamil Group Holding won projects in Jeddah and Jazan.
Background
Saudi Arabia’s Ministry of Energy has awarded eight licences to leading energy companies for the development of liquefied petroleum gas (LPG) filling and storage facilities, as well as wholesale distribution operations across the kingdom.
The awards form part of the ministry’s efforts to strengthen the country’s energy infrastructure, attract private investment and improve the efficiency of LPG supply chains.
Unigaz Arabia Company secured the largest share of the licences, winning contracts to establish and operate LPG filling and storage facilities in Riyadh, Hail and Al Ahsa. The company also received a wholesale LPG distribution licence covering the entire kingdom.
A consortium comprising NGC Energy Saudi and Zamil Group Holding was awarded licences to develop and operate LPG filling and storage facilities in Jeddah and Jazan. The partnership also secured a nationwide wholesale LPG distribution licence.
Tazweed was granted a separate wholesale LPG distribution licence covering Saudi Arabia.
According to the Ministry of Energy, the awards followed a competitive tender process designed to encourage investment and expand participation in the LPG sector. The projects will involve the establishment, operation and maintenance of strategic infrastructure, including filling plants, storage facilities, logistics networks and distribution systems.
The ministry said the licensing programme supports its broader strategy of increasing private-sector involvement in the energy industry while promoting competition and improving service quality through enhanced operational and safety standards.
The new infrastructure is expected to strengthen the reliability of LPG supply chains, improve operational efficiency and meet rising demand from residential, commercial and industrial customers across the kingdom.
