BUSINESS

US firms invited to bid for Saudi nuclear plants

December 04, 2017

Minister of Energy, Industry and Mineral Resources Khalid Al-Falih (R) and US Energy Secretary Rick Perry shake hands in Riyadh on Monday after a signing ceremony of a memorandum understanding on carbon management between Saudi Arabia and the US. — AFP
Minister of Energy, Industry and Mineral Resources Khalid Al-Falih (R) and US Energy Secretary Rick Perry shake hands in Riyadh on Monday after a signing ceremony of a memorandum understanding on carbon management between Saudi Arabia and the US. — AFP



RIYADH — Saudi Arabia has invited US firms to take part in developing its civilian nuclear power program, Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said on Monday, adding the Kingdom was not interested in diverting nuclear technology to military use.

Falih said Saudi Arabia was committed to restricting nuclear technology to civilian use.

“Not only are we not interested in any way to diverting nuclear technology to military use, we are very active in non-proliferation by others,” he said at a joint news conference with US Energy Secretary Rick Perry.

The King Abdullah City for Atomic and Renewable Energy (KACARE) is the Saudi government agency tasked with the nuclear plans. It said last month on its website that it was in talks with Toshiba-owned Westinghouse and France’s EDF.

“We hope that the two paths will converge — the commercial, technical discussions between KACARE and the American companies, while we work with our counterparts on the American side to address the regulatory and policy issues,” Falih said.

Perry said it was “a bit premature” to comment on the negotiations. “We are in the early stages of it but I think we both are working from the position of getting to yes,” he said.

The Kingdom says it wants nuclear power to diversify its energy mix allowing it to export more crude rather than burning it to generate electricity. It has not yet acquired nuclear power or enrichment technology.

Riyadh has said it wants to tap its own uranium resources for “self-sufficiency in producing nuclear fuel”.

The Kingdom sent a request for information to nuclear reactor suppliers in October, and plans to award the first construction contract in 2018.

Its nuclear plans have gained momentum as part of a reform plan led by Crown Prince Muhammad Bin Salman, deputy premier and minister of defense, to reduce the economy’s dependence on oil.

Riyadh wants eventually to install up to 17.6 gigawatts of atomic capacity by 2032 — or up to 17 reactors.

Falih also said that OPEC is expected to stick to its current policy of output cuts in the second half of 2018, but oil producers have plenty of supply with which to respond to any sudden disruptions. — Reuters


December 04, 2017
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