KNPC merger lifts LPG bottling output & sales

According to official data obtained by the newspaper, cooking gas sales in the country surpassed 17 million cylinders. The Shuaiba plant recorded incredible growth, producing 7,989,195 cylinders (12 kg size) -- an increase of 3.57 percent compared to the previous fiscal year. The domestic sales of the plant increased by 3.32 percent, reaching 7,909,168 cylinders, all of which were marketed. Official information also confirmed that the Umm Al-Aish plant continued its operational and integrated excellence under KNPC, producing 9,290,648 cylinders, an increase of 2.2 percent compared to the previous periods, and its sales jumped by 2.2 percent, reaching 9,131,842 cylinders.

KNPC now relies on a broad and integrated distribution network, comprising 83 strategically located gas distribution centers (gas branches) to cover all governorates and meet the rising demand. A reliable source affirmed that transferring the liquefied gas plants to KNPC yielded a comprehensive package of major strategic, operational and financial benefits, such as higher production efficiency, reduced expenses, and guaranteed sustainable supply for the local market.

The source added that unifying management and decision-making eliminated procedural duplication and bureaucracy, thereby, streamlining the paperwork. The source cited the achievement of real integration in supply chains by directly linking filling and distribution operations to the main liquefied gas sources at the refineries and major gas projects of KNPC. The source explained that this feature ensures a safe, seamless and continuous flow of products.

The source added that the merger granted exceptional geographical flexibility to the management, enabling them to reallocate production and instantly exchange supply and logistical quotas between the Shuaiba plant in the southern area and Umm Al-Aish plant in the northern area, based on supply and demand. The source stated that the merger plan remarkably reduced expenses and curbed financial waste by reducing costs and consolidating redundant administrative, logistical and technical functions. The source reiterated that this step contributed to the optimal and economical utilization of the assets and infrastructure of the two plants through the exchange of engineering expertise, implementation of regular maintenance plans, and procurement of spare parts and heavy equipment through competitive and cost-effective joint tenders.