Saudi Arabia awards LPG infrastructure development licences to top firms

15/06/2026 03:46 AST

Saudi Ministry of Energy has announced that it has awarded eight licences to major energy industry players for the setting up of liquefied petroleum gas (LPG) filling and storage facilities, as well as the wholesale distribution of LPG across the kingdom.

Unigaz Arabia Company snapped up the biggest share of the contract awards for the development and operation of LPG filling and storage facilities in Riyadh, Hail, and Al Ahsa, in addition to a kingdom-wide wholesale LPG distribution licence.

A consortium comprising NGC Energy Saudi and Zamil Group Holding was awarded licences for LPG filling and storage facilities in Jeddah and Jazan, along with a kingdom-wide wholesale LPG distribution licence, while Tazweed secured a wholesale LPG distribution license covering the entire kingdom.

The Saudi Ministry of Energy said these awards follow a competitive tender process aimed at attracting investment in the LPG sector and expanding the kingdom's energy infrastructure.

The scope of work includes the establishment, development, operation and maintenance of strategic LPG infrastructure, including filling plants, storage facilities, logistics networks, and wholesale distribution operations. The licensing programme forms part of the Ministry of Energy's broader strategy to increase private-sector participation in the kingdom's energy sector, promote competition among market participants, and enhance service quality through higher operational and safety standards.

These projects are expected to strengthen supply chain reliability, improve operational efficiency, and support growing demand for LPG across residential, commercial, and industrial sectors, it added.

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