RIYADH: In a strategic move aimed at expanding its reach and boosting profitability, Saudi Arabia’s Natural Gas Distribution Co. has announced the formation of First Gas Co., according to a bourse filing.
The newly established limited liability company, with a registered capital of SR500,000 ($133,000), is set to have its headquarters in Riyadh.
This has been achieved through a collaborative effort with TAQA Arabia, Egypt’s leading private-sector natural gas distributor.
Notably, NGDC and TAQA Arabia have entered into this partnership as equal stakeholders, marking a significant stride forward in the region’s natural gas sector.
Meanwhile, TAQA Arabia said in a disclosure statement on the bourse that the new venture was established to extend, maintain, and repair pipelines, as well as transport natural gas.
Both firms had earlier signed a memorandum of understanding to set up a new firm in the Kingdom to bolster NGDC’s expansion strategies and help TAQA Arabia achieve its vision of being a key player in the sustainable development and economic progress of the region.
In an announcement to Tadawul in May, NGDC said the collaboration aligns with its plan to expand its scope of operations and boost its profits.
The statement came close to NGDC’s financial results, released when the company reported a 33 percent jump in profit to SR3.3 million in 2022 from SR2.5 million in 2021. The company attributed the hike to its higher sales.
Its revenue increased by 1.6 percent to SR91 million in 2022 from SR89.59 million in 2021.
Last December, TAQA Arabia signed an MoU with the Egyptian government and the French energy leader, Voltalia, to develop a green hydrogen production facility in the Suez Canal Zone.
The Egyptian firm also partnered last March with GV Investments, Egypt’s leading real estate developers, to develop, design, build and operate the full-fledged infrastructure in Tarboul. The association will also provide clean energy sources in the first phase of the city.
TAQA Arabia employs one of the largest teams of engineers and construction professionals specifically trained in the natural gas distribution industry.
