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17-05-23

Saudi Arabia's Natural Gas Distribution Co. Forms Partnership with TAQA Arabia s

(MENAFN) Saudi Arabia's Natural Gas Distribution Co. (NGDC) has entered into a partnership agreement with TAQA Arabia, Egypt's largest private sector natural gas distributor. The purpose of this collaboration is to explore opportunities for developing and operating gas transportation services. Both companies have signed a memorandum of understanding (MOU) to establish a limited liability firm within the Kingdom, as stated in a bourse filing.

NGDC's decision to forge this partnership aligns with its strategic plan to expand the scope of its operations and enhance its profitability. Additionally, this collaboration supports TAQA Arabia's vision of becoming a significant player in the sustainable development and economic progress of the Middle East, Gulf, and Africa regions.

The announcement of this partnership follows closely on the heels of NGDC's recently released financial results. The company reported a significant 33 percent increase in profits, reaching SR3.3 million (USD880,042) in 2022 compared to SR2.5 million in 2021, primarily driven by higher sales. Moreover, NGDC's revenue witnessed a moderate rise of 1.6 percent, reaching SR91 million in 2022 from SR89.59 million in the previous year.

It is worth noting that both NGDC and TAQA Arabia had previously signed an MOU in September of the previous year, expressing their intent to collaborate in the development and operation of gas transportation services and networks. At that time, NGDC also entered into a one-year agreement with TAQA Arabia to enhance their collaboration and gain practical experience in the energy and gas sectors.

TAQA Arabia boasts one of the largest teams of engineers and construction professionals who possess specialized training in the natural gas distribution industry. This expertise positions them as key contributors to the success of this partnership.

Furthermore, in December, TAQA Arabia signed another MOU with the Egyptian government and French energy leader Voltalia. The purpose of this MOU was to collaborate on the development of a green hydrogen production facility located in the Suez Canal Zone.

Overall, the partnership between NGDC and TAQA Arabia holds promising prospects for expanding gas transportation services and contributing to the growth of the natural gas sector in Saudi Arabia.
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