Saudi Ministry of Energy Awards 8 Licenses for LPG Facilities and Wholesale Distribution
2026-06-23 14:43
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en.Wedoany.com Reported - The Saudi Ministry of Energy announced the awarding of 8 licenses for the construction of liquefied petroleum gas (LPG) filling and storage facilities and nationwide wholesale distribution operations, aiming to attract investment in this sector and expand the Kingdom's energy infrastructure. Unigaz Arabia Company secured the largest share of contracts, involving the development and operation of LPG filling and storage facilities in Riyadh, Hail, and Al Ahsa, along with a nationwide LPG wholesale distribution license.

A consortium comprising NGC Energy Saudi and Zamil Group Holding obtained licenses for LPG filling and storage facilities in Jeddah and Jazan, as well as a nationwide wholesale distribution license. Tazweed was granted a nationwide LPG wholesale distribution license. The Saudi Ministry of Energy stated that these licenses were awarded through a competitive bidding process.

The scope of work includes the establishment, development, operation, and maintenance of strategic LPG infrastructure, covering filling plants, storage facilities, logistics networks, and wholesale distribution operations. This licensing program is part of the Ministry of Energy's broader strategy to increase private sector participation in Saudi Arabia's energy sector, promote market competition, and enhance service quality through higher operational and safety standards. These projects are expected to strengthen supply chain reliability, improve operational efficiency, and support the growing demand for LPG in the residential, commercial, and industrial sectors.

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