Al Munif Trading, Industry, Agriculture and Contracting Company announced a new strategic step that enhances its presence in the logistics and energy sector, as it revealed the signing of an important agreement for the land transport of liquid fuels in the western region with the Saudi Power Procurement Company (the main buyer).
In an official statement published on the Saudi Stock Exchange (Tadawul) website on Sunday, the company clarified that it was awarded the project on December 27. The final contract is scheduled to be signed on January 1, 2026, and will extend for a period of three years. The contract value is subject to change based on agreed-upon unit prices and excludes VAT, thus providing the contract with flexibility to accommodate market fluctuations.
The operational and logistical scope
of this contract stipulates that Al-Munif Company will be responsible for transporting fuel from the loading centers of the global oil giant Saudi Aramco, as well as the filling stations of the Saudi Electricity Company. These transport operations aim to deliver fuel to the Saudi Electricity Company's power plants and facilities, including independent power generation plants, in accordance with a precisely defined scope of work to ensure the continuity of supply chains.
Regarding operational capabilities, it was agreed to allocate 100 qualified tankers to carry out these tasks, with a clause allowing for an increase in this number based on demand and field requirements. The company expects the financial impact of this contract to become clearly reflected in its 2026 financial statements, specifically throughout the quarterly financial statements of that year.
The context of the energy sector and the strategic role of the prime buyer:
This agreement comes at a time when the energy sector in the Kingdom of Saudi Arabia is undergoing significant structural transformations aimed at enhancing operational efficiency. The Saudi Power Procurement Company (the prime buyer) plays a pivotal role in this system, as it is responsible for tendering power generation projects and purchasing energy and fuel, thus ensuring fair competition and transparent procedures in this vital sector.
The economic and logistical importance
of this agreement is particularly significant given its strategic location in the Western Region, a vital artery of the Saudi economy and the gateway to the Two Holy Mosques. This makes the stability of electricity supplies in the region a top priority. Land transport of liquid fuels is an integral part of the energy security system, ensuring the uninterrupted and efficient operation of power generation plants. This aligns with the goals of the Kingdom's Vision 2030 to enhance infrastructure and logistics services.
Al Munif’s winning of this contract reflects the confidence of official bodies and major companies in its logistical capabilities and potential in managing huge transport fleets, which opens the door for the company to expand its market share in the specialized transport sector in the coming years.
