Riyadh Cement expects to rely entirely on natural gas as an alternative to liquid fuel in its operations by early 2027, according to chief executive Shoeil Al-Ayed.
Speaking to local media, Al-Ayed said the transition will be implemented in a single step, rather than through a phased approach. The move follows the company’s announcement on Tadawul earlier this year that it had signed a SR59.4m (US$15.8m) contract with Chengdu Design & Research Institute under Saudi Arabia’s liquid fuel displacement programme. Riyadh Cement said the contractor has already taken over the site and begun project execution.
Al-Ayed said the benefits of switching to gas extend beyond cost considerations, citing improved operational sustainability and a reduced carbon footprint. He added that the company was among the first cement producers to benefit from the Industrial Sector Competitiveness Programme, which has helped lower production costs and improve efficiency.
Commenting on market conditions, the CEO said the Saudi cement sector faced pressure in 3Q25 due to elevated clinker inventories and supply exceeding demand. While rejecting claims of a price war, he acknowledged that selling prices came under pressure, weighing on profitability.
Riyadh Cement recently disclosed that recent fuel price adjustments will raise production costs by around six per cent, with the financial impact reflected from 1Q26.