From Liquid to Gas: Transforming Energy Dynamics in Jeddah, Sudair, and Al Kharj

Ministry of energy announced 15 entities are being selected for BOO (Build, Own, and Operate) of natural gas distribution system. Saudi Arabia is planning modernize its gas distribution system into next level. As per Saudi Vision 2030, liquid fuel will be displaced by natural gas which will make a great impact on economy, environment, and social values.

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Project Scope & Locations:

These licenses cover the BOO (Building, Ownership, and Operation) of natural gas distribution networks all over the five major industrial hubs:

• Al Kharj Industrial City
• Sudair City for Industry and Business
• Jeddah First Industrial City
• Jeddah Second Industrial City
• Jeddah Third Industrial City

Prequalified Companies (8):

The individual companies represent a mix of local expertise and international energy players:

• East Gas Co.
• Natural Gas Distribution Co. (NGDC)
• Egyptian Kuwaiti Advanced Operation and Maintenance Co.
• Egyptian Natural Gas Co. (GASCO)
• Saab Energy Solutions Co.
• Seer Corp.
• Bharat Petroleum Corp. Ltd (BPCL)
• UniGas Arabia

Prequalified Consortia (7):

The consortia showcase strategic partnerships between Saudi firms and international technical leaders:

• Al Afdal Gas + Khazeen National Storage + Mobadra Industrial SPI Co.
• AlSharif Contracting Group (ASC) + Anton Oilfield Services + China Oil & Gas Group.
• Gas Solutions + Al Fanar Gas Group.
• Indraprastha Gas Limited (IGL) + Masah Specialized Construction Co. + AGL Gas.
• Expertise Contracting Co. Ltd. + BGL Pipeline Co.
• National Gas Co. (NatGas) + Egypt Gas Co.
• TAQA Arabia Co. + Energy and Gas Co. + TAQA Gas Co.

Timeline:

All these 15 entities will submit their technical bids until 23-April-2026.

Impact of this project:

• This kind of project will make a great impact on economy. The operation cost will be reduced than diesel. "Cost of Business" will be reduced. It will attract FDI (Foreign Direct Investment). Many foreign companies can come and run their industry in these five industrial cities. The Kingdom can export more oil to foreign countries with high profit margin.
• The logistics cost will reduce. As there were many oil tankers in before, all pipelines will be underground and no any logistics cost. So, it will attract SME (Small and Medium Enterprise) to come and operate their industry.
• Many new jobs will be created because of this project. Procurement of steel pipes will be done in Saudi Arabia which will boost economy of Saudi Arabia in steel sector.