Exclusive interview with our new Industry Council member, Rachid Majjad, CEO, National Gas Company
The Voice is is thrilled to welcome Rachid Majjad from National Gas Company, as our newest Industry Council member.
The Voice: What are your hopes and expectations as a newly appointed industry Council member of the WLGA?
Rachid Majjad: As a newly appointed industry Council member, I look forward to contributing to the advancement of the LPG industry. My focus will be on collaborating with the Experts to address regional challenges especially in the Gulf.
I hope to make meaningful contributions in three main areas:
- Increased Representation for the MENA, specifically the GCC Region: One of my key priorities is to ensure that the unique challenges faced by the GCC countries, especially in areas such as the enforcement of safety regulations, are adequately represented and addressed within the WLGA.
- Preparing for the 2050 Net-Zero Emission Target: I am eager to work towards developing strategies that will enable LPG companies in the region to meet the ambitious 2050 net-zero emission target, with a strong focus on controlling CO2 emissions within the sector.
- Carbon Credit Strategy Implementation in the GCC: I also aim to explore the feasibility and benefits of implementing a carbon credit strategy in the GCC, supporting regional efforts to combat climate change while aligning with global sustainability goals.
TV: Can you tell us a little about National Gas Company and the key drivers for the coming years?
RM: NGC was incorporated in 1979 to meet the growing LPG requirements of consumers. It is a fully Omani owned joint stock company. During the late 1970’s, the need to set up a local bottling plant was prompted by the problems faced by the local gas dealers, who had to travel to Dubai and Abu Dhabi to collect cylinders. Moreover, there were frequent shortages due to Omani dealers being given last priority. Our first Chairman, late Mr. Mohd Abdul Rasool Al Jamali, a true visionary, was instrumental in setting up National Gas Company. Today, the company retains its leadership position in the Omani market, having the largest LPG infrastructure in the Sultanate. It bottles more than two million cylinders per annum through its strategically located plants in different regions in Oman. We ventured into new geographies, extending our reach to the UAE, Malaysia, Saudi Arabia, and India, further solidifying our position as an energy group and key player in the energy sector. Today, we have our strong presence in UAE, Malaysia & Saudi Arabia.
Our Key Drivers, which serve as the pillars of our success and will continue to guide us forward, are:
- Customer Centric approach with the focus on delivering seamless and personalised services. Additionally, educating them on benefits, safety and efficiency of LPG, building trust and loyalty.
- Global Expansion with an aim to further penetrate in new markets in KSA and in South Asian countries having great potential in the LPG segment, to support them with reliable, safe, and cost-effective LPG cylinders.
- Operational Efficiency with a commitment to keep up our reputation for quality and safety by continuously improving production processes, implementing rigorous quality control measures. At the same time, we are focused on boosting production and logistics efficiency to drive cost reductions and enhance capacity.
- Partnering with Government to promote fair pricing and reduce the subsidy burden on private organisations, ensuring they maintain safety and quality standards. Additionally, we are investing in building strong infrastructure through technological advancements and service innovation to drive long-term growth in the LPG sector for the Sultanate of Oman.
- Woman Empowerment with a commitment to fairness and inclusivity. We are proud to maintain a gender pay ratio of 1:1 in Oman, ensuring equal pay for equal work. We empower all employees to thrive and contribute to our growth.
TV: What are the primary objectives and driving forces behind National Gas Company’s operations in its key markets?
RM: The company’s primary objective is to lead its market through innovative solutions that consistently meet the needs and expectations of all stakeholders. We work towards continuously enhancing our performance by implementing robust quality control systems, adopting advanced safety protocols, and optimising our operations. With an unwavering commitment to integrity in all our dealings, we strive to contribute responsibly to the environment, the community, and the nation, ensuring sustainable growth and positive societal impact.
TV: What do you consider to be the main opportunities for these key markets in 2025, and how does National Gas Company’s plan to capitalise on them for further expansion?
RM: In 2025, we see several key opportunities in the LPG market, especially in Oman and the broader GCC region. These opportunities focus on enhancing customer service, improving efficiency, and reducing government subsidy burden, while leveraging our proven success in other markets like Malaysia. Two significant opportunities that I can chart down are:
- Branding and Customer Service Enhancement in Oman: We plan to implement a robust branding system by focusing on service and safety excellence for end-user customers. We will implement strategies to make a better delivery model, more accessible customer support, and educational resources on safety and usage.
- Minimise Subsidy Burden: We recognise the growing need to reduce the financial burden on the government caused by LPG subsidies. Our strategy includes segregating household gas usage from industrial usage, ensuring that the right pricing models are applied to each segment and the industrial sector pays a fair market price for its consumption. Since Oman is one of the cheapest gas markets in the region, it gives a potential to attract both household, and industrial sectors.
Our subsidiary company in Malaysia serves as an excellent benchmark for our operations. Their success, includes running profitable on-the-ground operations, rebranding the erstwhile Shell LPG to MIRA Gas thereby providing valuable insights into how we can optimise our own processes in Oman.
TV: Reflecting on your membership with the WLGA, what do you feel are the significant advantages of your membership?
RM: The ability to contribute to industry discussions and advocate for meaningful change is an invaluable aspect of the membership with the WLGA. I look forward to the opportunity to collaborate with industry leaders, access valuable insights, rightly influence safety regulation and global standard decisions specific to sustainability goals.
TV: Anything else you may wish to add?
RM: In Oman, a key challenge is that LPG companies do not have authority or control over the source producer of LPG, which is currently managed through a quota mechanism. This system is not sustainable in the long term, as it limits flexibility and the ability to meet growing market demands efficiently. Addressing this challenge will be crucial for ensuring a more stable and sustainable supply chain for LPG in the future.
