Saudi Arabia, Japan to Establish Largest Reverse Osmosis Water Project in Middle East

Saudi Arabia and Japan are working on a joint project to build an integrated reverse osmosis membrane desalination plant. (Asharq Al-Awsat)
Saudi Arabia and Japan are working on a joint project to build an integrated reverse osmosis membrane desalination plant. (Asharq Al-Awsat)
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Saudi Arabia, Japan to Establish Largest Reverse Osmosis Water Project in Middle East

Saudi Arabia and Japan are working on a joint project to build an integrated reverse osmosis membrane desalination plant. (Asharq Al-Awsat)
Saudi Arabia and Japan are working on a joint project to build an integrated reverse osmosis membrane desalination plant. (Asharq Al-Awsat)

Saudi Arabia and Japan are working on a joint project to build an integrated reverse osmosis membrane desalination plant.

During a press conference in Riyadh on Saturday the Saline Water Conversion Corporation signed a contract to establish the first plant in the Middle East and the second of its kind outside Japan the Saudi Press Agency reported.

The event was held under the patronage of Eng. Abdul Rahman Al-Fadhli, Minister of Environment, Water and Agriculture.

The construction of the plant will take place entirely within in the Kingdom, carried out by a Saudi-Japanese team in partnership with the Local Content and Government Procurement Authority, and the Government Expenditure and Projects Efficiency Authority.

The project aims to enhance the Kingdom’s leadership potential and to adopt and maximize the use of its engineering capabilities in the desalination industry, by providing innovative solutions that make water sources sustainable, environmentally friendly, and highly energy efficient.

The factory will be established and implemented according to the highest standards and the latest technologies in this field.

The project also seeks to cover the high and increasing demand for the promising industry at the local and global levels, with the volume of demand estimated at 690 million riyals ($184 million) in Saudi Arabia by 2025, in addition to reducing the cost rate by about 14 percent and energy consumption by 4 percent.

Eng. Abdullah Al-Abdul Karim, Governor of SWCC, stressed that the localization of promising industries in the field of saline water desalination was an extension of the comprehensive national economic development, in accordance with Vision 2030 and the objectives of the national strategy for industry.

He added that the environment-friendly reverse osmosis membranes industry was one of the most important options for the desalination industry in the world, adding that the demand for this technology was increasing at an annual rate of 6 percent locally and 7 percent in the Gulf.

Al-Abdul Karim stated that the project meets the aspirations of raising efficiency standards, reducing energy consumption and strengthening water security.

“These industries will soon create abundant and attractive investment opportunities that support local content, with local production inputs exceeding 70 percent. It is expected that the export percentage of the entire production of the membrane factory will exceed 30 percent, which reinforces the country’s position as a vital base for leading industries with its promising opportunities and markets,” he underlined.

The SWCC is working to localize the desalination industry as part of efforts to promote and empower local employment initiatives through the creation of new industries.



Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides

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)
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Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides

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 rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.

Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73.

During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire.

That put both contracts on course for a weekly fall of about 12%.

"The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah.

"The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be."

The OPEC+ members will meet on July 6 to decide on August production levels.

Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst.

Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising.

Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week.

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

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