Riyadh Cement Company to Fully Transition to Natural Gas by 2027
Riyadh Cement Company has announced plans to fully transition to natural gas by early 2027, replacing liquid fuel, following a SAR 59.4 million contract with Chengdu Design & Research Institute. The move, which includes an SAR 85 million investment in an electrical grid, aims to enhance sustainability and reduce the company's carbon footprint, despite anticipated production cost increases and recent profit declines in the cement sector. CEO Shoeil Al Ayed confirmed that the transition will occur in a single phase without gradual implementation.
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Riyadh Cement Company plans to transition entirely to natural gas, replacing liquid fuel by the beginning of 2027. The company signed a contract worth SAR 59.4 million with Chengdu Design & Research Institute for this conversion.
Additionally, it signed an SAR 85 million contract for an electrical grid to support this initiative. The CEO, Shoeil Al Ayed, noted that the transition would occur in one phase without gradual implementation.
The company anticipates a 6% rise in production costs due to increased fuel prices from Saudi Aramco starting January 2026. The shift is expected to enhance operational sustainability and reduce the carbon footprint. Despite challenges in the cement sector, including a significant profit decline, the company aims to mitigate financial impacts through operational efficiencies and cost reductions.
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