Saudi's GASCO says to solve gas shortage soon

05/02/2015 09:37 AST

Saudi Arabia's gas company said on Wednesday it will soon end a shortage in the kingdom. The shortage of gas cylinders, used for cooking, in Jeddah and nearby cities has pushed up prices to 100 riyals in the black market from 15 riyals, the standard price of the cooking gas in the kindgom, according to local Saudi newspapers.

National Gas and Industrial Co (GASCO) expects in a few days to meet gas needs, GASCO's chief executive said.

The company's newly appointed CEO Eyas al-Hajeri told Al Arabiya television that state oil giant Saudi Aramco has halted scheduled maintenance work at a refinery to help meet demand.

State owned GASCO is in charge of transporting, filling and marketing liquified petroleum gas (LPG) in Saudi Arabia as well as marketing gas cylinders.

"Yesterday there was an increase in production which was higher than average, if this continues and I hope production will continue or rise in the coming few days to meet the shortage," he said.

Petrochemicals companies in the kingdom, including Saudi Basic Industries Co (SABIC) RIC which use gas as a feedstock have said the gas shortage has limited their expansion plans. Saudi Aramco is extensively looking for gas to meet rising demand for electricity and water.

Reuters