Energy Ministry reveals SAR 104B agreements at Energy Localization Forum

Logo of Ministry of Energy

The Saudi Ministry of Energy unveiled details of agreements announced at the Energy Localization Forum, totaling SAR 104 billion, aimed at enhancing supply chain sustainability and advancing localization in energy supplies.

According to the ministry’s post on X, the agreements cover several sectors, including electricity, renewable energy, oil and gas, supply chain, and services, in addition to other areas.

In the electricity sector, the ministry outlined multiple agreements, beginning with two deals for high-voltage substations between Saudi Electricity Co. (SEC), Alfanar Projects Co., and China Electric Power Equipment and Technology Co., Ltd. (CET), valued at SAR 14 billion.

Additionally, six agreements were signed to establish high-voltage transmission lines connecting the central, southern, and western regions of Saudi Arabia. These were agreed upon by SEC, Hyundai Engineering and Construction Co., Ltd., Saudi Services for Electro Mechanic Works Co. (SSEM), Larsen & Toubro Ltd. (L&T), and Alfanar Projects, with a total investment of SAR 8.5 billion.

The sector also saw a SAR 6 billion deal to localize gas-insulated distribution equipment between Hitachi Energy Co. and Siemens Energy Co., in addition to three further agreements worth SAR 5 billion aimed at localizing electricity generation between SEC, Siemens Energy, and Alfanar Projects.

Further localization efforts included a strategic joint venture (JV) between El Sewedy Electric Co. and Abunayyan Holding Co. to produce high and ultra-high voltage transformers, with an investment of SAR 330 million. A joint project between Arabian Transformers Co. (ATC) and CHINT Global, valued at SAR 329 million, was also launched to localize electrical equipment.

In the renewable energy sector, two agreements worth SAR 9 billion were concluded for battery energy storage systems between SEC, CET, and Algihaz Holding Co.

Additionally, 11 deals valued at SAR 5 billion were finalized to expand the renewable energy grid between SEC, Alfanar Projects, National Contracting Co. Ltd. (NCC), L&T, Algihaz Holding, and SSEM in projects.

There was also an announcement of a SAR 400 million localization agreement for manufacturing electric vehicle chargers by FIT and Next Charger.

Within the oil and gas sector, 10 agreements were secured to localize drilling equipment and chemical drilling materials, between Saudi Aramco, Baker Hughes Co., Schlumberger Ltd. (SLB), Halliburton Co., Weatherford International plc (WFRD), Energy Projects Support Co. (ENPRO), Breda Energia S.p.A, and National Oilwell Varco Co. (NOV). These contracts amounted to SAR 30 billion.

Another six contracts worth SAR 4 billion aimed at procuring gas detectors and control systems were sealed by Saudi Aramco, Honeywell Co., Emerson Electric Co., ATTL Advanced Co., Schneider Electric Co., Yokogawa Electric Corp., and Draeger Arabia Co. Ltd.

In supply chain and services, a SAR 4 billion investment was announced to localize engineering manufacturing and installation activities for Lamprell plc. Additionally, the Gulf Laboratory for Technical Services was launched in partnership with the GCC Lab, Nusaned Investment (the investment arm of SABIC), Jebin Co., and Motabaqah Co., at a total value of SAR 356 million.

The ministry also announced a series of strategic agreements across various energy sectors, collectively valued at SAR 17 billion.