Ahmed Kamel – Egypt Daily News
Egypt’s state-owned Modern Gas has signed a long-term agreement with real estate developer Talaat Moustafa Group (TMG) to establish and operate centralized gas networks for Banan Riyadh, a major residential project under development in northeastern Riyadh, Saudi Arabia.
The deal grants Modern Gas a 33-year concession, securing the company’s operational presence in the Saudi market and marking a notable instance of an African state-owned energy firm winning long-term infrastructure rights in the Gulf a reversal of the more typical flow of Gulf capital into African markets.
A Major Residential Development
Banan Riyadh is being developed across 10 million square meters in the Al-Fursan suburb of Riyadh and is expected to include more than 27,000 residential units upon completion.
Under the first phase covering four million square meters Modern Gas will design, build and operate a centralized gas distribution network at an investment cost of SAR 24 million (approximately $6.4 million). The project is being executed through Modern Gas Saudi Arabia, a subsidiary established in March 2024 with initial capital of $530,000 to anchor the company’s Gulf expansion.
The initiative will also benefit from co-investment by Egyptian partners FAJR Natural Gas Company and Petromaint, reinforcing cross-border collaboration within Egypt’s energy sector.
Building on a Domestic Track Record
The agreement extends a longstanding partnership between Modern Gas and Talaat Moustafa Group. In Egypt, the state energy firm previously delivered gas infrastructure for TMG’s flagship residential developments, including Madinaty and Noor City, among the country’s largest privately built urban communities.
By leveraging its domestic expertise in large-scale residential gas distribution, Modern Gas is positioning itself as a competitive infrastructure operator beyond Egypt’s borders.
Strategic Expansion
The Ministry of Petroleum and Mineral Resources framed the Banan agreement as consistent with ministerial directives aimed at expanding the international footprint of Egyptian petroleum-sector companies. The broader strategy seeks to generate foreign currency revenues and enhance Egypt’s profile as a regional energy services exporter.
While the Banan concession represents a relatively modest financial commitment compared with major upstream energy investments, its symbolic importance is considerable. It reflects growing confidence in the technical capabilities of Egyptian energy firms and their ability to compete in mature Gulf markets.
As Gulf economies pursue ambitious urban development plans and diversify away from hydrocarbons, infrastructure partnerships such as this may offer new avenues for cross-regional cooperation. For Modern Gas, the 33-year concession provides not only revenue stability but also a platform for further expansion in Saudi Arabia and potentially across the wider Gulf.
In an era when capital flows between Africa and the Gulf are increasingly multidirectional, the Banan project stands as a pointed example of Egyptian energy expertise moving outward reshaping traditional narratives of regional investment dynamics.
