In a press statement to the Saudi Press Agency (SPA), the Minister of Energy welcomed the visit of the Prime Minister of Japan, Fumio Kishida, to the Kingdom, which begins today, explaining that the Kingdom and Japan are strategic partners in the field of energy, and that this partnership has been greatly strengthened within the framework of the goals and programs of the Kingdom’s Vision 2030. The consensus of views between the two countries on various energy issues, such as: their agreement on the importance of supporting the stability and balance of global oil markets, by encouraging dialogue and cooperation between producing and consuming countries, and the need to ensure security of supplies for all energy sources in global markets, in a way that serves the interests of all parties, and achieve sustainable global economic growth.
He also stressed that the Kingdom and Japan attach importance to adherence to the principles of the Framework Convention on Climate Change and the Paris Agreement, and focus on emissions rather than energy sources, through the effective application of the circular carbon economy approach and carbon recycling technologies.
Prince Abdulaziz bin Salman indicated that the Kingdom, based on its commitment to the strategic relationship with Japan in the field of energy, continues to achieve the security of oil supplies to Japan, by storing Saudi crude oil in the strategic storage facility on Okinawa Island, as well as by maintaining being the most important partner and source. Reliability of crude oil supplies to Japan.
He drew attention to the fact that, in 2021, the Kingdom became the largest oil supplier to Japan, supplying about 40% of Japan’s needs, stressing the continuation of joint cooperation between the two countries in the field of clean hydrogen and its applications, in addition to developing the infrastructure for carbon circular economy applications, within the framework of the two memorandums of cooperation. In the fields of clean hydrogen and ammonia fuel and its derivatives, and the circular carbon economy and carbon recycling, which were signed between the Ministry of Energy in the Kingdom of Saudi Arabia and the Ministry of Economy, Trade and Industry in Japan.
And the Minister of Energy indicated that the arrival of the first shipment of clean ammonia produced in the Kingdom of Saudi Arabia, which obtained a certificate approved by a neutral party, to Japan for use as fuel for electricity generation, represents a milestone in the process of developing clean energy solutions, and is the result of effective cooperation between several parties in the Kingdom. and Japan.
He commended the tendency of Japanese companies to invest and participate in the energy market in the Kingdom. To diversify global supply chains, through localization strategies that depend on the relevant comparative advantages enjoyed by the Kingdom, stressing that the Kingdom, by virtue of its close relationship with Japan in the field of energy, seeks to develop areas of cooperation between the two countries in projects of various energy sectors, which include conventional energy, renewables, and petrochemicals; To secure supply chains, as His Highness estimated the value of energy sector projects in the Kingdom of Saudi Arabia at about 2.85 trillion riyals over the next ten years.
The Minister of Energy indicated that the Kingdom’s purchases from Japan in the energy sector amounted to about 12 billion riyals during the past five years. Most of them are in the sectors of gas, petroleum, petrochemicals, and conventional energy, as the purchases included turbines, pumps, valves, compressors, and a variety of services that included engineering, logistical, administrative, and other services.
He added that there are many opportunities for cooperation between the two countries in the fields of petrochemicals, in reference to what the Kingdom recently announced, in terms of ambitious plans to increase its petrochemical production capacity, by converting liquids into chemicals, and increasing integration between all stages of the value chain. In addition to promising opportunities for cooperation and investment in the areas of electricity, energy efficiency, innovation, research and development, and the dissemination of technology to enable the transition to clean energy systems, especially the shift to renewable energy sources, and to new types of clean fuels such as: ammonia and clean hydrogen, and the use of carbon capture and utilization technologies. and store it.