Unigaz Arabia Signs SAR70 Million Saudi Gas Storage Contract

Unigaz Arabia has signed a definitive investment contract with Saudi authorities to develop an integrated gas storage, filling, and distribution plant in the Hail region. The agreement, valued at SAR70 million ($18.5 million), was concluded on September 16 in the presence of Hail Region Governor Prince Abdulaziz bin Saad bin Abdulaziz. This deal positions Unigaz as the primary developer, investor, and operator for the infrastructure project, which is designed to address regional energy logistics.

The project scope encompasses the entire lifecycle of the facility, including development, investment, management, and long-term operation and maintenance. The plant will be constructed on a 200,000 square meter site, serving as a modern logistics hub. This infrastructure is intended to meet the residential and commercial gas demands of the Hail region, expanding the company’s active role in the GCC and Middle East gas sectors.

Contractual Scope and Operational Responsibilities

Under the terms of the agreement, Unigaz Arabia assumes comprehensive control over the project’s execution and subsequent upkeep. The company is responsible for all capital investment required to build the facility on the designated 200,000 square meter plot. Post-construction, the firm will manage the daily operations and maintenance of the gas storage and distribution systems.

This commitment aligns with Unigaz’s established profile as a pioneer in the LPG industry. By taking on both the development and operational roles, the company integrates the new facility into its existing network of gas sector assets. The project serves as a critical node for distributing liquefied petroleum gas to end-users within the Hail region.

Regional Economic and Employment Impact

Saudi authorities emphasized that the project supports broader economic development goals by increasing private-sector participation in public services. The governor highlighted that such industrial investments are vital for creating employment opportunities for local youth. The facility is expected to generate jobs during both the construction phase and its long-term operational period.

The initiative is positioned to strengthen the local supply chain by providing a dedicated logistics hub for gas distribution. By centralizing storage and filling operations in Hail, the plant aims to enhance the efficiency of gas delivery to residential and commercial customers. This expansion supports the government’s objective of diversifying the regional economy through infrastructure development.

Strategic Expansion in Gas Sector

The signing of this contract represents a significant addition to Unigaz Arabia’s portfolio in the Middle East. The company continues to invest in gas infrastructure to meet growing regional demand. The Hail project complements existing operations, reinforcing the firm’s presence in key markets across the GCC.

Industry observers note that the integration of storage, filling, and distribution functions into a single facility improves logistical efficiency. This approach reduces the complexity of the supply chain for local gas providers. The project underscores the ongoing trend of private entities taking on larger roles in critical energy infrastructure in Saudi Arabia.

Project Location and Infrastructure Details

Unigaz assumes full operational control of Hail project

Unigaz Arabia has secured a SAR70 million contract to develop an integrated gas storage, filling, and distribution plant in the Hail region. The facility is designed to serve as a modern logistics hub, addressing both residential and commercial energy demands within the area.

Under the terms of the agreement, the company is responsible for the full lifecycle of the project. This includes not only the initial development and investment but also the ongoing management, operation, and maintenance of the facility, which will be constructed on a 200,000 square meter site.