Gas Law No. 12 of 2026.

This Law, comprising 32 articles, aims at (i) regulating the sector's activities; (ii) encouraging investment in the sector's infrastructure and diversifying its sources; (iii) enhancing the Kingdom's gas supply security; (iv) protecting consumer rights. The provisions of this Law do not apply to (i) upstream stages related to the extraction, production, gathering, processing, and purification of natural gas; (ii) any activities involving hydrocarbon substances primarily derived from petroleum; (iii) licensing agreements concerning sector activities that were signed with the government before the entry into force of this Law. Under Article 5, the Ministry of Energy and Mineral Resources is responsible for developing and proposing the sector’s overall strategy and public policy, promoting investment and competition, and supporting the sector both domestically and internationally. It establishes priority criteria for supplying critical sectors, contributes to the development of an integrated sector information system, and approves the sector emergency plan submitted by the Authority. Under Article 6 the Energy and Minerals Regulatory Authority is responsible for supervising and monitoring licensees to ensure compliance with the law and license conditions, including conducting inspections of sector facilities and installations. It collaborates with relevant entities to establish and implement environmental requirements applicable to sector activities, facilities, and infrastructure. The Authority also develops and maintains an integrated sector information system.
The sector covers the development, ownership, and operation of infrastructure for natural gas and hydrogen derivatives, whether for shared or dedicated use. This includes pipeline transmission and distribution systems, regasification, liquefaction, and storage facilities, as well as main and secondary stations and dual-use pipeline networks. It also encompasses commercial and service activities such as wholesale and retail supply, import and export, non-pipeline transport, distribution from main stations, construction of vehicle refueling facilities, and transit services, in addition to any other activities designated by the Council. Engagement in any sector activity is prohibited without a license. Licensed operators are required to ensure the safety of property and occupants and to fully comply with applicable safety standards. They must coordinate with relevant authorities and obtain all necessary approvals and permits, including those related to security, environmental protection, technical standards, and construction requirements. Licensees are also responsible for operating and maintaining facilities in accordance with approved codes, submitting regular compliance reports, maintaining separation of activities and accounting independence, and securing or acquiring land and rights required for their projects in line with applicable legal procedures. The licensee is responsible for any incidents or damage resulting from gas or hydrogen leaks, including impacts on public safety, health, security, or the environment, subject to relevant sales and purchase agreements. They are also responsible for the quality of the gas and hydrogen products they supply or sell to consumers, as well as the accuracy and proper functioning of their measurement and control equipment.
To protect the consumer's rights and ensure sustainability, the selling and purchasing price of gas and hydrogen derivatives is determined by the licensee according to the principles of competitiveness and transparency, while adhering to pricing methodologies approved by the Authority that take into account transportation, distribution, and production costs.