Saudi Arabia and Yemen signed on Tuesday an agreement worth $150 million to supply petroleum derivatives for power plants across various Yemeni governorates.
The agreement was signed under the patronage of Yemeni Prime Minister Dr. Shaya Mohsin Zindani and is part of Saudi Arabia’s support through the Saudi Development and Reconstruction Program for Yemen (SDRPY) to the Yemeni Ministry of Electricity and Energy, reported the Saudi Press Agency.
It was signed by Minister of Electricity and Energy Eng. Adnan Al-Kaf and Saudi Ambassador to Yemen and SDRPY General Supervisor Mohammed bin Saeed Al Jaber.
The petroleum derivatives support, consisting of diesel and mazut, will fuel more than 70 electricity generation plants across various Yemeni governorates, helping boost the stability and continuity of electricity services and support vital sectors linked to electrical energy.
The support reflects Saudi Arabia’s longstanding commitment to supporting the Yemeni people and alleviating their humanitarian suffering, particularly amid rising temperatures.
It is expected to contribute to stimulating commercial activity, creating job opportunities, and promoting economic growth in Yemen.
An additional agreement was also signed between the Yemeni oil company PetroMasila, the Yemeni Ministry of Electricity and Energy, and SDRPY to support the sustainability of PetroMasila’s operations as a state-owned company, strengthening its capabilities, improving operational efficiency, and ensuring continuity of services in support of the Yemeni government.
The initiative will be implemented under a comprehensive governance framework to ensure that assistance reaches the final beneficiaries, through a supreme committee linked to the prime minister and comprising several Yemeni entities responsible for overseeing and monitoring the distribution of petroleum derivatives to power plants based on the identified needs of electricity generation facilities across Yemen.
SDRPY provided petroleum derivatives grants in 2018 valued at $180 million, one in 2021 worth $422 million, another in 2022 amounting to $200 million, and one in 2026 valued at $81.2 million.
The current $150 million grant comes as searing summer temperatures approach and amid an urgent need to improve electricity service quality to better daily life and living standards for the Yemeni people.
