In a statement on Wednesday, the minister said the newly approved law regulates licenses for natural gas and hydrogen activities.

The Cabinet on Tuesday approved a bylaw for energy supplies.

Prince Abdulaziz said that the new law was issued to complement the sector legislative system based on the best international practices, said.

“The law aims to enable the efforts of restructuring the energy sector, in order to contribute to boosting the sector performance, achieving national goals and ensuring the optimal uses of energy,” he added.

“These structural and organizational developments necessitated revolutionizing the energy sector. They also required keeping pace with the best practices related to energy allocation and governance procedures, in order to achieve the highest value for the national economy.”

He said that this also aims to reach the goals of energy mix, boost energy efficiency, promote localization and raise local content rates. In addition, the law seeks to support the implementation of the circular carbon economy approach and promote the effective greenhouse gas management.

The comprehensive law came in response to the need to expand the scope of participation, raise the level of coordination between relevant authorities and boost transparency, while taking into account the strategic priorities of the various sectors and the criteria used in the localization process.