Natural Gas Distribution Co. partners with TAQA Arabia to set shop in the Kingdom

Both firms also signed an MOU in September last year to develop and operate gas transportation services and networks. (Shutterstock)

RIYADH: Saudi Arabia’s Natural Gas Distribution Co. has entered into a partnership agreement with TAQA Arabia, Egypt’s largest private sector natural gas distributor, to explore ways to develop and operate gas transportation services. 
Both companies signed a memorandum of understanding to set up a limited liability firm in the Kingdom, according to a bourse filing. 
In an announcement to the Saudi Stock Exchange, NGDC said the collaboration aligns with the company’s plan to expand its scope of operations and boost its profits.    
It also helps TAQA Arabia’s vision of being a significant key player in the sustainable development and economic progress of the Middle East, Gulf and Africa. 
The announcement comes close to NGDC’s financial results released recently when the company reported a 33 percent profit jump to SR3.3 million ($880,042) in 2022 from SR2.5 million in 2021, thanks to higher sales. 
Its revenue increased by 1.6 percent to SR91 million in 2022 from SR89.59 million in 2021. 
Both firms also signed an MOU in September last year to develop and operate gas transportation services and networks. 
At the time, the natural gas producer signed a one-year agreement to collaborate more effectively and gain practical experience in the energy and gas sectors. 
TAQA Arabia employs one of the largest teams of engineers and construction professionals specifically trained in the natural gas distribution industry.  
Last December, the company 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 production facility will have a capacity of 15,000 tons per year. It will be developed in a greenfield site near Ain Sokhna port in the Suez Canal Economic Zone, using a 100MW electrolyzer supplied with 283MW of renewable power.   
TAQA 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.