Saudi Arabia: Riyadh Cement expects to fully rely on natural gas as a substitute for liquid fuel in its operations from the beginning of 2027, according to CEO Shoeil Al-Ayed. The company previously announced that it had signed a US$15.8m contract with Chengdu Design & Research Institute as part of its liquid fuel displacement programme. Riyadh Cement said the contractor has already taken over the site, begun implementation and received the advance payment in line with agreed terms.

Al-Ayed said “The cement sector during the third quarter of 2025 faced some challenges represented in high clinker inventory levels for most companies, which reflected an increase in supply exceeding the actual demand in the market.”

He added that the market had been subject to increasing pressures that led to a noticeable decline in selling costs, which had negatively impacted the profitability levels of cement companies during that period. It was also communicated that the shift to natural gas would be implemented in a single step rather than through a phased transition. The expected cost savings will reportedly depend on the gas price applied at the time, with no official accounting price yet communicated.

Fuel Gas Riyadh Cement Middle East and Africa