IGL eyes Saudi Arabia for first overseas city gas venture

NEW DELHI: What's good for Delhi seems to be good for Saudi Arabia. After helping the National Capital Region breathe easy by launching India's first CNG (compressed natural gas) service in 1999, IGL (Indraprastha Gas Ltd) is poised to enter the Kingdom, becoming the first Indian city gas operator to venture overseas.The company, promoted by state-run oil companies and the Delhi government, on Thursday entered into a strategic partnership with Saudi construction major MASAH Construction Company for jointly developing and operating natural gas distribution networks in key industrial cities across the kingdom.“This collaboration goes beyond economic synergy. It represents a shared commitment to innovation and sustainability.

By combining MASAH’s infrastructure expertise with IGL’s proven capabilities in designing and operating city gas networks, in line with (Saudi Arabia's) Vision 2030, we aim to build resilient and scalable systems that deliver lasting benefits to industries, communities, and the environment,” MASAH Construction chairman Mohammed Abdul Nayeem said.“We are proud to be the first Indian city gas distribution company to venture in the overseas natural gas sector.

Our partnership with MASAH reflects IGL’s strategic expansion for bringing world-class clean energy solutions to new global markets,” IGL MD Kamal Kishore Chatiwal said.The partnership coincides with the visit of a delegation from the Saudi Arabia Investment Promotion Agency, aimed at highlighting investment prospects within the kingdom. In this regard, IGL's partnership can be regarded as a pivotal moment in bilateral relations, which have historically been characterised by a buyer-seller dynamic, with Saudi Arabia ranking among the top three oil suppliers to India.Both countries are making efforts to elevate the buyer-seller relationship to a broad-based economic partnership with cross investments. Saudi Arabia is also trying to wean its economy away from oil and transform into a regional business hub by attracting foreign investors.Under their alliance, IGL and MASAH Construction are expected to jointly participate in a structured process followed in the kingdom, which typically involves public tenders and strategic partnerships led by the energy ministry and state-owned enterprises followed in Saudi Arabia.

The alliance is eyeing several cities, except capital Riyadh and the holy cities of Mecca and Madina.The alliance will leverage IGL’s strengths in planning, designing and operating natural gas networks, complemented by MASAH’s expertise in regulatory management, engineering, procurement, construction, and local stakeholder engagement.