The Saudi National Gas & Industrialization Company (GASCO), the kingdom’s sole filler and distributor of liquefied petroleum gas, declared it had raised its capital from 500 million Saudi riyals ($133.3 million) to SR 750 million ($200 million). The company recently awarded a free stock for every two stocks held, a move which stimulated the increase, according to Al-Hayat . The Riyadh-based GASCO is a joint stock company, 84.5 percent of which are held by private shareholders.
GASCO posted a net operating income of SR 128 million ($34.1 million) in 2000, compared with SR 72 ($19.2 million) in the previous year. The company received a $30.1 million loan from the Saudi Industrial Development Fund this year to finance expansion of GASCO’s distribution network, in a bid to meet the growing domestic gas demands.
Domestic consumption is expected to grow by eight percent per annum through 2007. Increasing gas production is a priority for the Saudi government, not only due to the rapidly rising local demand, but also in an effort to switch from burning oil to gas in local power generation stations, a move that would free up additional crude oil for export.
Saudi Arabia sits atop the fifth largest reserves of gas in the world, with proven natural gas reserves of 220 trillion cubic feet (Tcf). Over 60 percent of Saudi Arabia's gas reserves consist of associated gas, mainly from the offshore Safaniya and Zuluf fields and onshore Ghawar field, which alone accounts for one-third of the country's total gas reserves.
In 1975, following the nationalization of the kingdom’s gas sector, all operating distributors were incorporated into one company, the National Gas Industrial Company (GASCO). Founded originally in 1963, GASCO was then on given the sole license to sell and market the liquefied petroleum gas throughout the Kingdom regions.
The company installs gas networks in residential and manufacturing complexes and sells gas tanks and cylinders. The selling prices of gas, controlled and uniform throughout the kingdom, are currently set at 0.72 riyals per liter of gas.
Gas delivery networks, are being operated by several approved distributors who buy the gas from GASCO and sell it to the consumers at fixed rates. The kingdom is served by over seven million gas cylinders, either 26.5 Liters or 52.5 Liters in capacity. GASCO owns a fleet of 350 gas carriers, with a 40,000-liter capacity, and 42 carriers with 11,000 to 23,000 liter capacity. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
