Saudi Arabia Releases Market Regulations for Gas, LPG Distribution, Sales Services

Self-Service Vending Machine for Gasco Saudi Arabia (Asharq Al-Awsat)
Self-Service Vending Machine for Gasco Saudi Arabia (Asharq Al-Awsat)
TT

Saudi Arabia Releases Market Regulations for Gas, LPG Distribution, Sales Services

Self-Service Vending Machine for Gasco Saudi Arabia (Asharq Al-Awsat)
Self-Service Vending Machine for Gasco Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia has taken a significant step towards enhancing the relationship between service providers and consumers by introducing regulations that govern the process of distributing and selling liquefied petroleum gas (LPG).

These regulations aim to streamline and improve the interaction between the parties involved, ensuring efficient and reliable LPG services for consumers.

On Sunday, the Energy Ministry released a guidebook outlining the procedures for providing LPG distribution and sales services, revealing the introduction of self-service and e-services, marking a significant milestone in the sector.

The government issuing the executive regulations, regulatory guidelines, and service provision manual for the dry gas and LPG distribution systems for residential and commercial purposes aims to encourage investment in these activities to serve the public interest and achieve developmental objectives in the country.

The new guidelines will be enforced across all outlets selling gas cylinders, including stores, kiosks, and self-service vending machines.

Service providers are required to promptly disclose any changes in service or product prices, while also offering various payment options, whether electronic or through point-of-sale devices.

Additionally, a comprehensive payment system will be established, encompassing all e-payment methods.

According to the guidelines, gas cylinder retailers are obligated to offer all approved types of cylinders that are in sound condition, clean, and equipped with sealed valves.

These cylinders should be sold at the approved tariff, ensuring that consumers have access to pricing information for other products and services as well.

Service providers must also commit to ensuring that self-service vending machines and kiosks for cylinder sales include clear instructions in both Arabic and English.

Furthermore, service providers must pledge to fulfill orders within a maximum period of six hours from the time of acceptance.

According to the released guidelines, service providers are required to adhere to the procedures governing invoice issuance and payment collection for their services.

Invoices must comply with the relevant regulations and requirements, and they should be issued and provided to the consumer either physically, via text message, or through email.



Russia’s First Ice-Class LNG Carrier Enters Sea Trials, Data Shows

A concrete gravity-based structure (GBS) of Arctic LNG 2 joint venture is seen under construction in a dry dock of the LNG Construction center near the settlement of Belokamenka, Murmansk region, Russia July 26, 2022. (Reuters)
A concrete gravity-based structure (GBS) of Arctic LNG 2 joint venture is seen under construction in a dry dock of the LNG Construction center near the settlement of Belokamenka, Murmansk region, Russia July 26, 2022. (Reuters)
TT

Russia’s First Ice-Class LNG Carrier Enters Sea Trials, Data Shows

A concrete gravity-based structure (GBS) of Arctic LNG 2 joint venture is seen under construction in a dry dock of the LNG Construction center near the settlement of Belokamenka, Murmansk region, Russia July 26, 2022. (Reuters)
A concrete gravity-based structure (GBS) of Arctic LNG 2 joint venture is seen under construction in a dry dock of the LNG Construction center near the settlement of Belokamenka, Murmansk region, Russia July 26, 2022. (Reuters)

The first Russian-built ice-class liquefied natural gas (LNG) carrier has entered sea trials, LSEG data showed on Friday, as part of Russia's efforts to raise global LNG market share despite US sanctions.

The tanker, named Alexey Kosygin after a Soviet statesman, was built at the Zvezda shipyard and is due to join the fleet of vessels for Russia's new Arctic LNG 2 plant, which has been delayed because of the US sanctions over the conflict in Ukraine.

The US Treasury has also placed sanctions on the new vessel, which Russia's leading tanker group Sovcomflot ordered to be built at Zvezda, Russia's most advanced shipbuilding yard. LSEG ship-tracking data shows it is anchored near the Pacific port of Vladivostok.

Sovcomflot has not replied to a request for comment.

Novatek, which owns 60% of Arctic LNG 2, has said 15 Arc7 ice-class tankers that are able to cut through two meter (6.5 ft) thick ice to transport LNG from Arctic projects, will be built at Zvezda shipyard.

According to a source familiar with the matter, Novatek shut down commercial operations at the first and only operational train of its Arctic LNG 2 project in October with no plans to restart it during winter.

Ice-class tankers usually have double hulls - strengthened structures to withstand the pressure of ice - and reinforced propellers.

So far, only three suitable gas tankers have been built for Arctic LNG 2, according to public information: the Alexey Kosygin, Pyotr Stolypin and Sergei Witte vessels.

Six more Arc7 tankers were due to be built by Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, including three for Sovcomflot and three for Japan's Mitsui O.S.K. Lines.

However, the three tankers ordered by Sovcomflot were cancelled due to the sanctions against Russia, Hanwha said last year in regulatory filings.