Dry gas and liquid petroleum gas distribution Law for residential and commercial purposes issued by Royal Decree No. (M/126) of 2017 and amended by Royal Decree No. (M/112) of 2022.

This Law consisting of 21 articles aims to establish a framework for the efficient and effective distribution of Dry Gas and LPG for residential and commercial purposes, with a focus on consumer protection, safety, and industry development, in particular (i) administer activities to safeguard public welfare and uphold the rights of consumers and licensees, including enforcing adherence to approved policies and safety standards for gas supply to consumers; (ii) uphold the quality of activities in alignment with environmental standards and promote research, development, and technology localization, fostering advancements in work methods and technologies; (iii) foster investment in activities through a competitive landscape, ensuring equitable economic returns and facilitating access to Dry Gas, LPG, and SNG services for consumers. Under Article 3 the Ministry of Energy is responsible for preparing and updating a long-term plan for Dry Gas and LPG provision, issuing necessary licenses, promoting competition, ensuring supply availability, monitoring Licensees and Retailers, and approving tariffs considering approved prices, cost recovery, service quality, and existing contractual arrangements. Article 4 outlines the activities governed by the Law, including constructing and operating gas distribution networks, transporting LPG, operating filling and storage facilities, bulk distribution, and retailing LPG cylinders, while Article 5 mandates obtaining a license for engaging in any of these activities.
The Law focuses on promoting competition, monitoring market conditions, and ensuring adequate geographical coverage of gas supplies. Key provisions include (i) the construction, operation, and maintenance of Dry Gas Distribution Networks and Independent Gas Distribution Networks to connect residences and commercial establishments; (ii) the transportation of LPG to facilities or networks; (iii) the creation of a competitive environment to encourage investment in gas distribution services, ensuring a fair economic return for licensees while providing quality services to consumers. Violations of the Law can result in penalties, including fines, revocation of licenses, and publication of penalty decisions.