Saudi Ministry of Energy: Localization of Products Reached 60%

Officials signing deal on sidelines of Saudi Electricity Forum (Asharq Al-Awsat)
Officials signing deal on sidelines of Saudi Electricity Forum (Asharq Al-Awsat)
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Saudi Ministry of Energy: Localization of Products Reached 60%

Officials signing deal on sidelines of Saudi Electricity Forum (Asharq Al-Awsat)
Officials signing deal on sidelines of Saudi Electricity Forum (Asharq Al-Awsat)

Localization of products associated with the industry of electricity reached 60 per cent and prices of domestic energy are very close to current global levels, according to an official at the Ministry of Energy, Industry and Mineral Resources in Saudi Arabia.

Deputy Minister of Energy, Industry and Mineral Resources and Chairman of the Board of Directors of Saudi Electricity Company (SEC) Saleh al-Awaji stated the past years witnessed the localization of heavy industries in cooperation with the entities related to the energy sector.

He pointed out that there are factories specialized in assembling gas turbines of capacity exceeding 300 megawatts.

During a press conference on the sidelines of the announcement of the meeting of Saudi Electricity Forum scheduled for October 10 to 12, Awaji confirmed that high-tension sectors will be localized in Saudi Arabia. He added that the process of localizing industries related to electricity will continue until needs of local markets have been met, noting that increasing energy efficiency will be reflected on the prices.

During the Forum, achievements of Custodian of the Two Holy Mosques program which was launched a year ago, will be presented, stated Awaji. He said that the Forum will see a number of investment opportunities related to renewable energy and the settlement of services.

The Deputy said that renewable energy is a primary and important source for electricity and will help enhance electric energy. 

"Reconstructing sector of electricity is developing properly, and within a year, the general features of the structure of it will be completed," Awaji said.

He pointed that some developments came up which required a revision of the structure with an inclination towards privatization of the electricity sector.

The Deputy explained that the forum will discuss challenges facing the sector and propose the appropriate solutions within the framework of Vision 2030. It will also review incentives and appropriate legislation aiming to introduce additional revenues to the national economy.

Awaji stressed that the ministry is concerned with encouraging and enhancing the localization of the electrical industries supporting these sectors, especially with industries related to the equipment, materials, electrical spare parts used in generating, transmitting, and distributing electric power. 

The forum and its associated Exhibition provide great opportunities for the local and international companies to directly market their innovative technologies and expertise to decision-makers, participants, and visitors. Also, they present a good chance to conduct meetings with companies, businessmen, and officials during the event.

International and local specialists will attend and give speeches in this Forum which represents an opportunity for senior officials, experts and investors to exchange experiences and enrich knowledge in the field of electricity, in addition to identifying investment opportunities in the Saudi market within the framework of Kingdom of Saudi Arabia’s Vision 2030.



Oil Rises as Investors Weigh Market Outlook, Tariffs, Sanctions

A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk
A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk
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Oil Rises as Investors Weigh Market Outlook, Tariffs, Sanctions

A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk
A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk

Oil prices rose by around 1% on Friday as investors weighed a tight prompt market against a potential large surplus this year forecast by the IEA, while US tariffs and possible further sanctions on Russia were also in focus.

Brent crude futures were up 76 cents, or 1.11%, at $69.40 a barrel as of 1153 GMT US West Texas Intermediate crude ticked up 82 cents, or 1.23%, to $67.39 a barrel.

At those levels, Brent was headed for a 1.6% gain on the week, while WTI was up around 0.6% from last week's close.

The IEA said on Friday the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power-generation, Reuters reported.

Front-month September Brent contracts were trading at a $1.11 premium to October futures at 1153 GMT.

"Civilians, be they in the air or on the road, are showing a healthy willingness to travel," PVM analyst John Evans said in a note on Friday.

Prompt tightness notwithstanding, the IEA boosted its forecast for supply growth this year, while trimming its outlook for growth in demand, implying a market in surplus.

"OPEC+ will quickly and significantly turn up the oil tap. There is a threat of significant oversupply. In the short term, however, oil prices remain supported," Commerzbank analysts said in a note.

Further adding support to the short-term outlook, Russian deputy prime minister Alexander Novak said on Friday that Russia will compensate for overproduction against its OPEC+ quota this year in August-September.

"Prices have recouped some of this decline after President Trump said he plans to make a 'major' statement on Russia on Monday. This could leave the market nervous over the potential for further sanctions on Russia," ING analysts wrote in a client note.

Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine and Russia's intensifying bombardment of Ukrainian cities.

The European Commission is set to propose a floating Russian oil price cap this week as part of a new draft sanctions package, but Russia said it has "good experience" of tackling and minimising such challenges.