‘Saudi Desalination’: Chinese Plants for Brine Mining Operational by 2026

One of the factories under Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for brine water mining (Asharq Al-Awsat)
One of the factories under Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for brine water mining (Asharq Al-Awsat)
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‘Saudi Desalination’: Chinese Plants for Brine Mining Operational by 2026

One of the factories under Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for brine water mining (Asharq Al-Awsat)
One of the factories under Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for brine water mining (Asharq Al-Awsat)

The General Manager of Commercial Services at the Saline Water Conversion Corporation (SWCC), Eng. Mohammed Al-Ghamdi, announced the start of operations for two new Chinese plants at the Ras Al Khair station in eastern Saudi Arabia.

These plants will focus on utilizing brine water and extracting minerals, with operations beginning in the first quarter of 2026.

The SWCC has made agreements with local and international companies to develop investment opportunities in brine mining.

These agreements were disclosed during the Future Minerals Forum in Riyadh last week.

As part of these agreements, two plants will be established in collaboration with Chinese partners in Ras Al Khair, targeting the extraction of essential minerals and salts from brine water, contributing to the circular economy outlined in “Vision 2030.”

Brine water, a byproduct of seawater desalination, contains high levels of salts and minerals like sodium chloride, magnesium chloride, potassium chloride, bromine, and others.

This approach helps reduce waste from seawater desalination and lessens reliance on mineral imports.

Al-Ghamdi emphasized the importance of brine water due to its high salt content.

He highlighted that extracting minerals and essential elements from it for the market is cost-effective and energy-efficient, presenting significant economic opportunities given the abundance of these waters.

Al-Ghamdi shared that investments in brine mining are projected to reach about SAR 8 billion ($2.1 billion dollars) by 2030, boosting the local economy.

He pointed out upcoming efforts to extract essential minerals like magnesium, potassium, and high-purity sodium chloride. These minerals are vital for diverse industries in the Kingdom.

Al-Ghamdi confirmed that the new plants will help produce elements like sodium and bromine within the Kingdom, reducing the need for imports

The goal is to meet 25%- 40% of the local market demand by 2030.



China's Iran Oil Imports Surge in June on Rising Shipments, Teapot Demand

FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
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China's Iran Oil Imports Surge in June on Rising Shipments, Teapot Demand

FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS

China's Iranian oil imports surged in June as shipments accelerated before the recent conflict in the region and demand from independent refineries improved, analysts said.

The world's top oil importer and biggest buyer of Iranian crude brought in more than 1.8 million barrels per day (bpd) from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.

Kpler's data put the month-to-date average of China's Iranian oil and condensate imports at 1.46 million bpd as of June 27, up from one million bpd in May.

The rising imports are fueled in part by the accelerated discharge of high volumes of Iranian oil on the water after export loadings from Iran reached a multi-year high of 1.83 million bpd in May, Kpler data showed.

It typically takes at least one month for Iranian oil to reach Chinese ports, Reuters reported.

Robust loadings in May and early June mean China's Iran imports are poised to remain elevated, Kpler and Vortexa analysts said.

Independent Chinese "teapot" refineries, the main buyers of Iranian oil, also showed strong demand for the discount barrels as their stockpiles depleted, said Xu Muyu, Kpler's senior analyst.

A possible relaxing of US President Donald Trump's policy on Iranian oil sanctions could further bolster Chinese buying, she added.

Trump said on Wednesday that Washington has not given up its maximum pressure campaign on Iran - including restrictions on Iranian oil sales - but signaled a potential easing in enforcement to help the country rebuild.

For this week, Iranian Light crude oil was being traded at around $2 a barrel below ICE Brent for end-July to early-August deliveries, two traders familiar with the matter said, compared to discounts of $3.30-$3.50 a barrel previously for July deliveries.

Narrower discounts were spurred by worries that oil flows could be disrupted through the Strait of Hormuz, a critical waterway between Iran and Oman, traders said.

Market fears for a closure of the chokepoint had escalated after last weekend's US attack on Iranian nuclear sites but eased after Iran and Israel on Tuesday signaled a ceasefire.

Tighter discounts for Iranian oil come amid a retreat in futures prices. ICE Brent crude futures hovered at $68 per barrel on Friday, their level before the Israel-Iran conflict began and down 19% from Monday's five-month peak.