Egypt’s state-owned Modern Gas has secured a rare long-term infrastructure concession in the Gulf, signing an agreement with prominent Saudi real estate developer Talaat Moustafa Group (TMG) to build and operate centralized gas networks for the Banan Riyadh development — a large-scale residential city rising in northeastern Riyadh.
The deal grants Modern Gas a 33-year concession, a significant foothold in the Saudi market for an African state energy company. The first phase of the project covers four million square metres within TMG’s Banan Riyadh development, which spans a total of 10 million square metres and will eventually deliver more than 27,000 residential units in Riyadh’s Al-Fursan district. Modern Gas will invest SAR 24 million (approximately $6.4 million) to build and operate the centralized gas distribution network in this initial phase.
The project is being executed through Modern Gas Saudi Arabia, a subsidiary of the Egyptian Natural Gas Holding Company (EGAS) established in March 2024 with $530,000 in seed capital to anchor the company’s Gulf expansion. Co-investment from Egyptian partners FAJR Natural Gas Company and Petromaint will further support the effort.
The Banan agreement extends an established working relationship between Modern Gas and TMG. The Egyptian company previously built gas infrastructure for TMG’s Madinaty and Noor City projects in Egypt — two of the country’s largest privately developed residential cities. Egypt’s Ministry of Petroleum and Mineral Resources framed the deal as a strategic step to open new international markets for Egyptian petroleum sector companies and generate foreign currency inflows through overseas expansion.
Source: energycapitalpower.com