The natural gas distribution company announced today that it has received an official letter from the Saudi Ministry of Energy regarding an amendment to the natural gas service tariff. According to this decision, the new tariff has been set at SAR 1.39 per million British thermal units (MMBtu) of dry gas. The company clarified in its statement that this new pricing will be effective from January 1, 2026.
Regarding the financial impact of this amendment, the company anticipates a positive effect on its financial results starting from the first quarter of 2026. The company's management confirmed that it is conducting a detailed study to determine the precise expected financial impact and remains committed to disclosing any material developments in due course, reflecting the company's commitment to transparency and disclosure in the financial market.
Context of energy sector reforms in the Kingdom
This decision comes within the context of the strategic transformations taking place in the energy sector in the Kingdom of Saudi Arabia, where the Ministry of Energy is continuously reviewing and governing energy product prices to align with global standards and ensure efficient consumption. These adjustments are an integral part of the energy price reform program, which aims to enhance economic efficiency and encourage industrial and commercial sectors to adopt more sustainable resource consumption practices.
This approach aligns with the goals of Saudi Vision 2030, which aims to maximize the utilization of hydrocarbon resources. The Kingdom places paramount importance on the natural gas sector as a cornerstone of its national energy mix. The government seeks to increase the share of gas and renewable energy in electricity generation through the National Liquid Fuels Replacement Program, thereby contributing to reduced carbon emissions and environmental protection, while also freeing up crude oil for export or high-value-added downstream industries.
Economic and investment importance
From an economic perspective, the early announcement of the tariff adjustment and its implementation date in 2026 is a positive step that enhances the stability of the investment environment. This timeframe clarity allows companies and investors in the industrial sector to more accurately formulate their long-term financial and operational plans. Furthermore, adjusting the service tariff to align with operational and development costs enables gas distribution companies to expand their networks and improve the quality of services provided to consumers, thereby supporting the Kingdom's overall industrial infrastructure.
