https://arab.news/rnk4d
- SABIC signed six new deals, including an agreement with Al Masafi for the construction of a nitric acid plant in King Salman Energy Park
- Oil and gas sector also saw activity, with Baker Hughes inking seven key agreements with private sector entities
RIYADH: Deals to boost localization efforts across Saudi Arabia’s renewable energy and oil and gas sectors were among those signed on the second day of a special event in Riyadh.
Among the most notable announcements at the Energy Localization Forum was a joint collaboration between Saudi Basic Industries Corp., also known as SABIC, and the Kingdom’s Small and Medium Enterprise Bank as part of the Nusaned program, designed to finance and support small and medium-sized enterprises.
SABIC also signed six new memorandums of understanding, including an agreement with Al Masafi for the construction of a nitric acid plant in King Salman Energy Park, with a capacity of 200 kilo-tonnes per annum, and another with Arabian Renewable for Environmental Services, focusing on the transformation of waste tires into valuable products.
The oil and gas sector also saw activity, with Baker Hughes inking seven key agreements with private sector entities, including a deal with Metall-Treat Industries for coating and machining services, and another with Azad Engineering for the local development of high-precision machined components.
Saudi Electricity Co. also signed three deals, including a purchase agreement for fuel additives with Farabi Petrochemicals Group and another with REDA Hazard Control for safety equipment.
Additionally, SEC signed four more agreements related to “operation and maintenance” services with Saudi-based companies, including Bilfinger and Doosan, further emphasizing the role of local partnerships in ensuring energy supply chain resilience.
Siemens Energy announced a partnership with the National Innovation Industrial Co., also known as NAMI, to jointly develop 3D printing applications for advanced gas turbine components, highlighting the role of technological innovation in advancing the country’s energy infrastructure.
The agreements made at the meeting reflect the Kingdom’s strategic goal of achieving 75 percent localization in the energy sector by 2030, a key element of Vision 2030 aimed at reducing import dependency and boosting national capabilities.
In his keynote address, Mazin Al-Bahkali, CEO of Saudi Power Procurement Co., highlighted the transformative role of energy localization in Saudi Arabia, adding that the Kingdom’s strategy is not only about deploying renewables but also about building an ecosystem that supports sustainability.
“This is not just a vision, it is a reality,” he said in reference to the the 75 percent localization target, pointing to the growing local production of gas turbines and solar panels.
Mazin Al-Bahkali, CEO of Saudi Power Procurement Co., speaking at the event. AN
These developments were further echoed by Sultan bin Khalid Al-Saud, CEO of the Saudi Industrial Development Fund, who described the importance of localizing energy components as “pivotal.”
“The only certainty is the global demand for energy will increase. The Kingdom has been growing both its hydrocarbon resource and also renewables, in clean hydrogen as well as in storage and carbon capture,” he said, adding that there is a need for local content to ensure Saudi Arabia captures value within its economy and builds resilience in its supply chains.
Abdulrahman Al-Samari, CEO of the Local Content and Government Procurement Authority, added: “The unique model of local content requirements embedded in renewable energy is a good example of how to leverage the procurement process for your localization agenda.
The first day of the Energy Localization Forum saw the signing of 124 agreements worth over $27.7 billion with 118 companies.