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Türkiye, Saudi Arabia Sign Comprehensive Power Purchase Agreement

Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud and Turkish Energy and Natural Resources Minister Alparslan Bayraktar attend the signing of a power purchase agreement between Türkiye and ACWA Power in Istanbul on Friday (photo from the Turkish minister’s account on X).
Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud and Turkish Energy and Natural Resources Minister Alparslan Bayraktar attend the signing of a power purchase agreement between Türkiye and ACWA Power in Istanbul on Friday (photo from the Turkish minister’s account on X).
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Türkiye, Saudi Arabia Sign Comprehensive Power Purchase Agreement

Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud and Turkish Energy and Natural Resources Minister Alparslan Bayraktar attend the signing of a power purchase agreement between Türkiye and ACWA Power in Istanbul on Friday (photo from the Turkish minister’s account on X).
Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud and Turkish Energy and Natural Resources Minister Alparslan Bayraktar attend the signing of a power purchase agreement between Türkiye and ACWA Power in Istanbul on Friday (photo from the Turkish minister’s account on X).

Türkiye’s Energy and Natural Resources Ministry signed a comprehensive power purchase agreement with Saudi energy giant ACWA Power to develop solar power plants and projects in Türkiye with major investments.

The agreement, signed in Istanbul on Friday, was attended by Türkiye’s Energy and Natural Resources Minister Alparslan Bayraktar and Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud.

It includes the construction of two solar power plants in the Turkish provinces of Sivas and Karaman with a combined capacity of 2,000 megawatts and investments totaling $2 billion, as well as the implementation of large-scale solar projects with a total capacity of 5,000 megawatts in Türkiye.

Commenting on the agreement, Bayraktar said: “During our president Recep Tayyip Erdogan’s visit to Riyadh on Feb. 3, we signed an intergovernmental agreement on renewable power plant projects with my Saudi counterpart, HRH Prince Abdulaziz bin Salman Al Saud, which provides for total investments in solar and wind energy in Türkiye of 5,000 megawatts.”

“Today, we reinforced this cooperation by signing the agreement with ACWA Power in Istanbul. In the first phase of the project, two solar power plants with a total capacity of 2,000 megawatts will be built in Sivas and Karaman, with an investment of around $2 billion. This will add capacity to our grid to meet the electricity needs of 2.1 million households,” he added.

Bayraktar said on X that in Sivas, the agreed purchase price is 2.35 euro cents per kilowatt-hour, while in Karaman, electricity will be bought at a fixed price of 1.99 euro cents per kilowatt-hour, the lowest price recorded in Türkiye. The agreed prices will be valid for 25 years.

He said the projects, which are expected to make a significant contribution to the energy sector, require a minimum 50% local content ratio, adding that groundwork is targeted this year, operations are scheduled for 2028, and full production capacity will be reached as soon as possible.

In the second phase of the agreement, with a total capacity of 5,000 megawatts, “we aim to expand our cooperation with additional investments in solar and wind energy amounting to 3,000 megawatts,” Bayraktar said, expressing hope that the move would strengthen confidence in Türkiye’s renewable energy transition and investment climate and benefit the Turkish energy sector.

Two-phase plan

Construction under the first phase of ACWA Power’s investments in Türkiye is scheduled to begin in the first or second quarter of 2027, with electricity supply expected to start by mid-2028.

ACWA Power aims to sign an agreement with Türkiye on the second phase of its renewable energy investments before November.

The first-phase projects offer highly competitive electricity sale prices compared with other renewable power plants in Türkiye. In addition, the plants, valued at about $2 billion, will supply electricity to more than 2 million Turkish households.

A Turkish state-owned company will purchase the electricity generated by the plants for 30 years. During implementation, maximum use will be made of locally sourced equipment and services.

In recent years, Türkiye has sought to attract Gulf investments into its energy sector as it works to raise renewable power generation capacity to 120 gigawatts by 2035. Several previous attempts were not completed due to disagreements over financial valuations and pricing.

ACWA Power announced in June its intention to build two large solar power plants in Türkiye as part of a plan to invest billions of dollars in the Turkish energy sector.

Major investments

While the exact value of ACWA Power’s investment has not been disclosed, Türkiye said two years ago it was in talks with the company over projects worth up to $5 billion.

Türkiye’s Treasury and Finance Minister Mehmet Simsek described the intergovernmental energy agreement signed during Erdogan’s visit to Riyadh as a major boost for foreign direct investment inflows into Türkiye.

He said the pace of foreign direct investment in Türkiye is accelerating, reflecting growing confidence in its economic program, adding that the inflow of $2 billion in foreign direct investment into renewable energy projects through the agreement with Saudi Arabia would accelerate the green transition, strengthen energy security, and structurally reduce dependence on energy imports.

ACWA Power’s portfolio, 44% owned by Saudi Arabia’s Public Investment Fund, includes a gas-fired power plant in Türkiye. The company also expanded its solar energy projects in 2024 in Malaysia, Indonesia, and Uzbekistan.

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Saudi Aramco Weighs Global Oil Storage Facilities to Boost Energy Security

The Public Investment Fund governor addresses attendees at the summit in Rome, Italy. (Asharq Al-Awsat)
The Public Investment Fund governor addresses attendees at the summit in Rome, Italy. (Asharq Al-Awsat)
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Saudi Aramco Weighs Global Oil Storage Facilities to Boost Energy Security

The Public Investment Fund governor addresses attendees at the summit in Rome, Italy. (Asharq Al-Awsat)
The Public Investment Fund governor addresses attendees at the summit in Rome, Italy. (Asharq Al-Awsat)

Saudi Arabia laid out a new strategy in Rome to strengthen global supply chains and build a broader partnership model with Europe, seeking to move beyond current geopolitical pressures and deepen economic ties across regions.

Public Investment Fund Governor and Saudi Aramco Chairman Yasir Al-Rumayyan said Aramco was studying plans to establish additional oil storage facilities in strategic locations worldwide to strengthen energy security.

At the same time, he said the PIF was preparing about 140 new investment opportunities for European partners worth 10.4 billion euros by 2030, after its investments helped support European GDP by $80.6 billion and create 160,000 jobs.

The targets came as Riyadh activated 41 contingency and business continuity plans to address the fallout from the closure of the Strait of Hormuz and Bab al-Mandab and secure shipping and air traffic.

Italian Prime Minister Giorgia Meloni called for European-Gulf relations to move toward an untapped strategic integration linking three continents, while Saudi Arabia’s tourism sector continued to show resilience, supported by domestic and religious tourism despite regional pressures.

The remarks came during al-Rumayyan’s participation in a high-level panel at the FII PRIORITY Europe 2026 summit, affiliated with the Future Investment Initiative Institute, held in the Italian capital.

Al-Rumayyan said Saudi Aramco already owns vital oil storage facilities in several major global markets, particularly in Asia, South Korea and Japan. He said the company was now seriously studying additional storage facilities in different regions to help stabilize markets and protect supply lines from sudden shocks.

The Aramco chairman said recent crises had underscored the importance of long-term planning. The company, he said, maintained continuity in more than 99% of its operations during recent periods of tension and restarted facilities previously hit by missile attacks in record time, reflecting the efficiency of its infrastructure and the resilience of its supply chains.

On partnership with Europe, al-Rumayyan said the PIF planned to offer about 140 new investment opportunities to expand cooperation with European partners. The opportunities linked to joint projects are worth a total of 10.4 billion euros ($11.97 billion) and extend through 2030, he said.

He also pointed to regulatory and legal challenges that have slowed the expansion of Saudi investments in Europe and affected major companies such as Aramco, SABIC and the sovereign wealth fund.

Some rules, he said, not only limit new capital flows but also threaten the sustainability of existing projects. Still, he said European policymakers and regulators were aware of the obstacles, raising hopes for better solutions in the coming period.

On the wider energy transition, al-Rumayyan called for “energy realism,” saying new and renewable energy sources were an important strategic addition but not a full replacement for oil and gas.

Vital industries such as petrochemicals, fertilizers and food production still depend on fossil fuels, he said, while global energy demand is rising with the rapid expansion of artificial intelligence applications and data centers.

Europe and the Gulf

Meloni said the next phase required Europe and Gulf states to move toward a deeper relationship based on strategic partnership and economic integration. The two sides, she said, have major potential to link three continents and expand trade, energy flows and investment.

Speaking at the FII PRIORITY Europe 2026 summit in Rome on Thursday, Meloni said Europe needed to strengthen its independence and industrial and technological capabilities, while cooperation with the Gulf offered an opportunity to build a shared path that supports global stability and growth.

She said strengthening cooperation between Europe and Gulf states was a priority for the next phase, adding that the partnership had significant untapped potential and could become a decisive bridge between West and East, and between Africa and Asia.

Meloni said Italy intended to play a leading role in that effort as a gateway to Europe and a natural hub for energy, logistics and trade in the Mediterranean.

Europe and the Gulf, she said, could together offer a strategic cooperation model that can be replicated and expanded, turning energy, trade, infrastructure and connectivity networks into sources of stability rather than vulnerability.

Treaties of Rome

Meloni said the choice of Rome for the summit carried special significance. The city hosted the signing of the Treaties of Rome in 1957, which laid the foundations of today’s European Union. As the 70th anniversary of those treaties approaches, she said Europeans should reflect on the Europe they want and need to build.

She said that vision was aligned with the Future Investment Initiative’s role as a global agenda bringing together ideas, capital, technology and practical projects to build the future. She voiced hope that Rome would become the initiative’s permanent European stop, where results are measured, progress is reviewed and new priorities are set jointly.

Hormuz crisis

Saudi Transport and Logistics Services Minister Saleh al-Jasser said the current Strait of Hormuz crisis had required countermeasures, prompting Riyadh to activate 41 business continuity and emergency plans that had already been prepared and tested. That readiness, he said, allowed the kingdom to respond quickly from the earliest days of the crisis.

Speaking at the summit, al-Jasser said the region was facing difficult conditions, but Saudi Arabia was ready to address the developments. He cited a 2013 experience when the kingdom faced challenges in the Red Sea and had to redirect its trade eastward toward the Arabian Gulf, while protecting trade flows and preserving supply chain resilience.

Al-Jasser said the kingdom helped manage disrupted flights and evacuate passengers who had landed at different airports. It also rerouted ships bound for ports in the Eastern Province to ports in the western region.

The minister said the challenges were not limited to the closure of the Strait of Hormuz but also included ongoing difficulties in Bab al-Mandeb.

Some international shipping companies, he said, were hesitant to cross, requiring coordination, information sharing and a greater role for the private sector. Since the start of the current crisis, more than 23 new shipping services have been launched in coordination with the private sector, he said.

Saudi tourism developments

Saudi Tourism Minister Ahmed al-Khateeb said domestic tourism represents between 60% and 65% of total tourism activity in the kingdom, making it a key source of balance and stability during periods of disruption to international travel.

Strong local demand, he said, helped keep Saudi Arabia’s tourism sector moving, particularly during seasons and holidays when domestic destinations reach full bookings. That demand strengthened the sector’s ability to withstand external shocks.

Al-Khateeb said the global and Saudi tourism sectors had faced pressure in recent months from geopolitical tensions, higher travel costs and fluctuations in air traffic. Even so, he said the system had shown an ability to recover and maintain relative stability.

Global tourism has fully recovered from the fallout of the coronavirus pandemic, he said, with the number of travelers worldwide reaching about 1.5 billion last year and total spending hitting about $2.2 trillion. Yet travelers still represent only about 20% of the world’s population, he said, pointing to significant room for growth.

In Saudi Arabia, he said, the kingdom received about 123 million visitors in the previous year. Tourism now accounts for 5.2% of GDP, with a strategic target to raise that share to 10%.

Al-Khateeb said the sector has created about 1 million jobs since the launch of tourism transformation programs, driven by expanding investment in destinations, infrastructure and related services.

“The start of this year was strong for Saudi Arabia and Gulf states, before tourism movement was affected by regional tensions, higher fuel costs and the cancellation of a number of flights, which affected demand levels and travel costs,” he said.

Despite those pressures, he said the kingdom ended the first five months of the year with positive performance and only a slight decline of about 5% to 6% compared with the same period last year. He described that as a “resilient” performance under global conditions.

Al-Khateeb said religious tourism remains a core pillar of stability, as Saudi Arabia hosts the Two Holy Mosques, ensuring a steady flow of visitors throughout the year for Hajj and Umrah.

Former president of the Future Investment Initiative Institute Richard Attias said Europe was at a turning point as the world undergoes rapid and unprecedented change.

According to Attias, artificial intelligence is reshaping industries, capital flows are shifting, energy systems are being redrawn, supply chains are being restructured, geopolitical balances are changing and new global centers are emerging at an exceptional pace.

Business

Kuwait Says All Force Majeure Issued During War Lifted

This photograph shows the conjunction of Jupiter and Venus over the skyline of Kuwait City on June 9, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
This photograph shows the conjunction of Jupiter and Venus over the skyline of Kuwait City on June 9, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
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Kuwait Says All Force Majeure Issued During War Lifted

This photograph shows the conjunction of Jupiter and Venus over the skyline of Kuwait City on June 9, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
This photograph shows the conjunction of Jupiter and Venus over the skyline of Kuwait City on June 9, 2026. (Photo by YASSER AL-ZAYYAT / AFP)

Kuwait's Petroleum Corporation said on Thursday that all force majeure notices issued during the war have been lifted ⁠with immediate effect, ⁠government communication center reported on X.

Kuwait's oil ⁠production would increase to 2 million barrels per day within a week coinciding with the opening of Strait ⁠of Hormuz ⁠and resumption of commercial shipping, KPC added.

Business

Syrian Petroleum Company to Asharq Al-Awsat: Syria to Receive 56% Share of US Gas Development Deal

During the signing of the agreement between the Syrian Petroleum Company and US firms ConocoPhillips and Novaterra Energy. (SANA)
During the signing of the agreement between the Syrian Petroleum Company and US firms ConocoPhillips and Novaterra Energy. (SANA)
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Syrian Petroleum Company to Asharq Al-Awsat: Syria to Receive 56% Share of US Gas Development Deal

During the signing of the agreement between the Syrian Petroleum Company and US firms ConocoPhillips and Novaterra Energy. (SANA)
During the signing of the agreement between the Syrian Petroleum Company and US firms ConocoPhillips and Novaterra Energy. (SANA)

Mohammad Nour Al-Ahdab, Director of Media Relations at the state-owned Syrian Petroleum Company (SPC), revealed on Thursday that under the contract signed with US companies ConocoPhillips and Novaterra Energy to develop and increase production from Syria’s gas fields, the Syrian side will receive a 56 percent share under the agreement, while the two investing companies will hold the remaining 44 percent.

Al-Ahdab told Asharq Al-Awsat that the arrangement is “favorable for Syria, particularly since gas-development contracts are typically structured close to a 50-50 split because of the scale of investment, technical and operational risks, and the nature of rehabilitation and production activities.”

He added: “What matters most to us is that the contract was designed to safeguard the national interest and deliver clear economic and technical returns through increased domestic production, stronger energy security, a gradual reduction in imports, and the transfer of expertise and technology to Syrian personnel.”

In what represents the most significant strategic breakthrough in economic and political relations between Damascus and Washington since the fall of the regime of Bashar al-Assad in late 2024, SPC on Tuesday signed a major implementation agreement with ConocoPhillips and Novaterra Energy to develop gas fields and increase production.

The move marks the country’s first major US energy deal in years and serves as a tangible indication of the beginning of a phase of “full-scale implementation,” supported by US President Donald Trump’s decision to lift sanctions in July 2025.

The contract follows earlier US initiatives launched at the beginning of 2026 through memoranda of understanding signed by other companies, including Chevron for offshore exploration and HKN Energy for the onshore Rmeilan fields.

However, the ConocoPhillips agreement stands out as the largest binding implementation contract aimed at developing the domestic gas sector, backed by Gulf and European partnerships and financing arrangements intended to help end the country’s severe energy crisis.

Al-Ahdab described the agreement as an important milestone in the rehabilitation and development of Syria’s gas sector because it moves cooperation with international partners beyond the memorandum-of-understanding stage and into formal contractual commitments and practical implementation.

“The importance of the agreement stems from several factors,” he said. “First, it targets the development of a number of existing gas fields and an increase in their production, which will support the energy system, particularly gas supplies needed for the electricity sector and other vital industries. Second, it opens the door to the introduction of international expertise and technologies in assessment, rehabilitation, processing, and operational-efficiency enhancement.”

According to Al-Ahdab, the agreement also reflects a clear commitment by SPC and the Ministry of Energy to building strategic partnerships capable of accelerating the recovery of the energy sector, gradually reducing reliance on imported gas, and preserving the role of Syrian professionals by empowering them through training and knowledge transfer.

“For us, this is not merely a production agreement,” he added. “It is part of a broader vision to rebuild the energy sector on sustainable technical and economic foundations in a manner that serves the national economy and meets citizens’ needs over the medium and long term.”

Al-Ahdab said the contract includes implementation phases related to the development of existing fields, the rehabilitation of operational infrastructure, and the gradual increase of gas production.

“There are also subsequent phases linked to additional development and exploration activities, subject to technical and contractual approvals agreed upon by the parties,” he said.

He added that the duration of the contract “is tied to the nature of the technical work and the various stages of implementation and production. Details that can be officially disclosed will be announced through the approved channels.”