The addition represents another step in the expansion of Al Shola Gas’s recurring LPG distribution business in the United Arab Emirates ("UAE"). The new bobtail increases Al Shola Gas’s fleet to 53 vehicles, including three LPG bobtails and 10 LPG cylinder trucks.
Al Shola Gas expects the newly delivered bobtail to progressively ramp to approximately 200 metric tons of LPG deliveries per month within four to six months of entering service. At that target volume, the Company expects the unit to generate approximately AED 400,000 to AED 500,000 ($109,000 to $136,000) in monthly revenue, equivalent to approximately AED 1.2 million to AED 1.5 million ($327,000 to $408,000) in quarterly revenue and approximately AED 6.0 million ($1.6 million) in annual recurring revenue at the upper end of the targeted monthly revenue range.
The targeted delivery volume is supported by the performance of Al Shola Gas’s existing bobtail fleet. Its larger-capacity bobtail currently delivers approximately 450 metric tons of LPG per month, while an existing bobtail comparable in capacity to the newly delivered unit currently delivers approximately 250 to 325 metric tons per month. The new bobtail has an approximately 17,800-liter LPG capacity and is expected to operate approximately 10 to 12 hours per day, seven days per week. Beyond adding incremental revenue capacity, the new unit is expected to improve delivery reliability and reduce Al Shola Gas’s reliance on third-party competitors when existing vehicles are unavailable due to scheduled maintenance or unexpected downtime.
Al Shola Gas also plans to expand its distribution capabilities through an additional LPG bobtail, which is currently in production. The approximately 7,000-liter unit is being built on a smaller chassis specifically designed to serve customers in city centers and other congested locations where larger LPG tankers face access, maneuverability and parking limitations. The smaller-format bobtail is expected to expand the range of customers and locations Al Shola Gas can economically serve, complementing the Company’s larger-capacity units and providing additional flexibility as it seeks to grow its LPG distribution business. Together, the new and planned bobtails are designed to increase Al Shola Gas’s delivery capacity, improve fleet redundancy and broaden its addressable customer base.
Separately, Al Shola Gas has obtained a Petroleum Products Permit from the Dubai Supreme Council of Energy ("SCE"), authorizing continued gas cylinder distribution, transport, sale and storage, as well as the bulk transport, distribution and sale of LPG via tanker. Under Dubai’s Executive Council Resolution No. 85 of 2025, all persons engaged in petroleum products trading activities in Dubai, including the distribution, transport, sale and storage of LPG, are required to hold a valid Petroleum Products Permit issued by the SCE, positioning Al Shola Gas to pursue LPG distribution opportunities, including tenders, that require such authorization.
Al Shola Gas’s permitting process took more than eight months to complete. Fusion Fuel believes the combination of increasingly rigorous Petroleum Products Permit requirements and enhanced enforcement measures under Dubai’s regulatory framework could reduce the number of non-compliant operators participating in the Dubai LPG market and create additional opportunities for fully permitted operators such as Al Shola Gas.