عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Speeds Up Efforts to Replace Liquid Fuels in Electricity Production

The two agreements will work on achieving the country’s targets to reach 50% of solar energy and other energy sources. (Asharq Al-Awsat)
The two agreements will work on achieving the country’s targets to reach 50% of solar energy and other energy sources. (Asharq Al-Awsat)
TT
TT

Saudi Arabia Speeds Up Efforts to Replace Liquid Fuels in Electricity Production

The two agreements will work on achieving the country’s targets to reach 50% of solar energy and other energy sources. (Asharq Al-Awsat)
The two agreements will work on achieving the country’s targets to reach 50% of solar energy and other energy sources. (Asharq Al-Awsat)

As part of the Saudi government’s efforts to achieve global leadership and the optimal mix in the renewable energy sector, the Kingdom is making accelerated efforts to replace liquid fuels with gas and renewable energy sources in electricity production.

On Tuesday, the Saudi Power Procurement Company (SPPC) signed two agreements to purchase energy with a total capacity of 1,500 megawatts.

In September 2022, the Ministry of Energy completed all legal procedures to purchase the Saudi Electricity Company’s shares in the Saudi Energy Production Company, to be fully owned by the state, as part of comprehensive reforms aimed at achieving sustainability and raising the efficiency of the sector within the country.

In remarks to Asharq Al-Awsat, Dr. Mohammad Al-Sabban, former senior advisor to the Saudi Oil Minister, said that the Saudi Energy Production Company was implementing a road map within the framework of Vision 2030, to reach clean energy and achieve net-zero emissions by 2060.

Al-Sabban explained that the two agreements will work towards the country’s goals of reaching 50 percent of solar energy and other energy sources for power generation and water desalination.

The first agreement signed by the Saudi Power Procurement Company within the fourth phase of the National Renewable Energy Program included the purchase of energy for the Hanakiya solar photovoltaic project, with a total capacity of 1,100 megawatts, with an alliance of three companies: Masdar, EDF and Nesma.

This project will contribute to supplying approximately 190,000 residential units with electrical energy annually.

The company also concluded a power purchase agreement for the Tabarjal Solar Photovoltaic Project, with a total capacity of 400 MW, with an alliance led by three companies, namely, Jinko Power (HK) Company Limited, Sun Glare Holding Co. and Sunlight Energy Holding Co.

The project is expected to contribute to supplying approximately 75,000 residential units with renewable electrical energy per year.
 

Most Viewed

 
 
Business

Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
TT
TT

Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.