New regulations for pipeline routes in Jubail and Yanbu for 2025
The Royal Commission for Jubail and Yanbu has issued a new and comprehensive legislative regulation concerning the management and operation of pipeline and utility corridors in its industrial cities, in a step aimed at enhancing the governance of gas and petrochemical transportation operations, and identifying precise mechanisms for leasing corridors, in order to ensure the safety of the networks according to the highest technical and security standards.
This strategic move comes at a time when Saudi Arabia is witnessing rapid development in the petrochemical and downstream industries sector, with the industrial cities of Jubail and Yanbu serving as the heart of Saudi industry and the backbone of the non-oil economy. The pipelines in these cities are of paramount importance, representing the "arteries" that supply factories with feedstock and raw materials, making their regulation and protection a national priority to ensure the continuity of production and global supply chains.
Scope of application of the new regulation
The provisions of the new 2025 regulations apply to all corridors designated for transporting raw materials and products between factories, in addition to vital utility routes such as electricity, water, and telecommunications networks within the geographical boundaries of the Authority's cities. This comprehensiveness aims to unify applicable standards and eliminate any regulatory overlaps that could affect operational efficiency.
Investment and partnership with the private sector
The new regulations, which were introduced via the "Survey" platform, require all lessees and users of pipelines to fully comply with technical and regulatory requirements. The regulations also grant the Royal Commission the authority to set rental fees and update pricing periodically based on specialized investment studies, thus enhancing financial transparency.
In order to enhance and empower the role of the private sector, the regulations authorized the Authority to assign the tasks of concluding lease contracts, maintenance work, and operating corridors to specialized external parties under specific framework agreements, which is in line with the objectives of the Kingdom’s Vision 2030 to raise operational efficiency and create new investment opportunities in the industrial services sector.
Strict safety and security standards
The regulations stipulate that investors must obtain approval from the Authority for the technical designs of any construction work within the corridors. To ensure the highest levels of safety, the regulations refer security designs and fire protection systems to the Higher Commission for Industrial Security for final approval, reflecting the integration among government agencies to guarantee the security of vital facilities.
Field monitoring teams and penalties
The regulations established specialized field teams in each industrial city, tasked with conducting periodic inspections and monitoring to identify violations, detect encroachments on essential infrastructure facilities, and issue technical reports on them. The new legislation imposed financial penalties on violators based on the regulations governing penalties for municipal violations and the rules for assessing the costs of repairing damages, while granting a specific timeframe for rectifying the identified violations.
Entry permits and emergency plans
The authority emphasized that it is the sole authority for issuing entry and work permits within the pipeline corridor area and prohibited any human or operational activity in those areas without prior official authorization. The regulations also mandate the immediate recording of all security and operational incidents, along with the preparation of comprehensive emergency and business continuity plans in direct coordination with the relevant security authorities, to ensure full readiness to respond to any emergency.
The regulations concluded by guaranteeing the right of establishments and individuals to appeal against imposed fines, according to detailed procedures and guidelines that will be issued by the competent authority, thus ensuring fairness and transparency in the application of penalties and enhancing the investment environment in industrial cities.
