Arab News, Tue, Jul 23, 2024 | Muharram 15, 1446
Saudi Arabia, Egypt to boost energy cooperation after high-level meeting
Saudi Arabia:
Saudi Arabia and Egypt are set to boost energy cooperation following a meeting
between top officials to expand ties in petroleum, gas, electricity, renewable
energy, and hydrogen.
On July 21, Saudi Minister of Energy Prince Abdulaziz bin Salman met with
Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi and Minister of
Electricity and Renewable Energy Mahmoud Esmat at his ministry’s headquarters in
Riyadh.
This comes as Saudi Arabia and Egypt deepen their
energy cooperation, with Egypt signing a $4 billion deal with Saudi Arabia’s
ACWA Power in December 2023 to develop a green hydrogen project. The agreement
includes a work plan for the first phase, targeting a production capacity of up
to 600,000 tons annually of green ammonia.
During the meeting, the ministers discussed various aspects of cooperation
between the two countries, aiming to align their efforts with the shared visions
of their leadership and the ambitions of their peoples, according to a statement
from the Saudi Energy Ministry.
“The energy strategies of both countries were
reviewed, and key work areas and measures to diversify the energy mix and
address challenges in the energy sector were discussed, all within the framework
of ensuring sustainable and affordable energy sources,” said the statement.
The recent Riyadh meeting also reviewed the
progress of joint projects, including the electrical interconnection between the
Saudi and Egyptian grids — the largest in the region.
This initiative aims to enhance the stability and
reliability of the electrical supply between the two countries and maximize the
economic and developmental benefits of their collaborative electrical
undertakings, the statement added.
In a similar statement issued by the Egyptian Ministry of Petroleum and Mineral
Resources, Badawi emphasized the depth of the partnership and the distinguished
relations between Egypt and Saudi Arabia, which have spanned decades across
various fields, particularly in energy.
He said that the strategies of both countries were reviewed, including key work
areas and measures to diversify the energy mix and address challenges in the
sector to ensure sustainable and affordable energy sources.
The minister said that his ministry’s priorities include increasing production,
accelerating exploration activities, and utilizing available capacities in
refineries and petrochemical plants.
Badawi also stressed the importance of enhancing cooperation with the Kingdom
and other allied countries, as well as exchanging expertise and sharing success
stories to maximize integration between the two nations and increase the added
value of natural resources.
The Egyptian statement also underlined the importance of developing action plans
with realistic and fundamental solutions grounded in economic principles to
ensure sustainability, and the need for continued investment in human resources,
the development of young talent, and women’s empowerment.
The meeting agreed on the need to optimize the use of petroleum resources while
considering environmental considerations. It discussed expanding programs and
initiatives to reduce carbon emissions, including improving energy efficiency
and enhancing the value of carbon through modern technologies and innovative
methods such as enhanced oil recovery, the Egyptian ministry added in its
statement.
The meeting concluded with the formation of joint working groups to focus on
priority areas of cooperation that will develop implementation mechanisms to
ensure actionable outcomes are achieved.