As Saudi Arabia undergoes an ambitious political, economic and social transformation more than US$80bn of investment is required to install 60GW of solar and 23GW of wind capacity in the Kingdom by 2030, finds a new country insights report by the Energy Industries Council.
Saudi Arabia's Vision 2030 programmes aims to reduce the country's dependence on oil which includes the recent National Renewable Energy Programme for the development of a highly ambitious renewables strategy in the Kingdom of Saudi Arabia (KSA).
The ‘EIC Country Insights report: Saudi Arabia' released online and distributed in Aberdeen on the side-lines of Offshore Europe today at the EIC pavilion, provides an in-depth PEST analysis of the Kingdom in addition to a insights on the country's current and future energy mix and identifies major developers, contractors operating in the country including a comprehensive guide on doing business in KSA.
Speaking ahead of Offshore Europe, Neil Golding, Head of Oil and Gas at EIC commented: ‘Our research shows while the Kingdom's Vision 2030 outlines plans to reduce its dependence on oil it does necessarily not mean the end of the Kingdom's oil and gas economy, with the country's state owned oil company Saudi Aramco, committed to investing US$500bn over the next decade.'
The plan includes US$134bn to spend on drilling and well services, US$78bn to maintain oil output potential, US$150bn to increase gas production, and over US$100bn on new refining and chemicals projects.
Ultimately, Saudi Arabia aims at converting about two to three million barrels of crude oil per day directly into petrochemical products and converting up to 70% of crude feedstock into petrochemicals. The Kingdom also plans to increase its gas production by 65% from current levels and to eventually transform itself into a gas exporter by 2030.
Other key findings and recommendations in 2019 include:
• Saudi Arabia's current power energy mix with a power peak demand that could reach 81GW by 2020 and 120GW by 2032, is unsustainable
• Saudi Vision 2030 aims at helping the Kingdom to reach, in the long term, 70% to 75% of power capacity being gas-fired (50% by 2040)
• Saudi Arabia lacks vertical wells drilled in areas prone to shale and calibrate horizontal trajectories, while limiting costs
• KSA's first nuclear project will be located close to the Qatari border
• Saudi Electricity company set to install another 18,110km of transmission lines across the Kingdom
• Key focus by the government on integrating more Saudis in the workforce with an emphasis on providing skills and training by 2030
Assimilating foreign companies into the Kingdom's energy sector growth strategy is to play a central role in the success of Saudi Arabia's private sector expansion and embracing a new economic paradigm.
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Notes to editors
For more information or a copy of the report contact :
Communications & Media Manager
Tel: +44 (0)20 7091 8638
Email: lucy.chakaodza @the-eic.com
About the EIC
Established in 1943, EIC is the leading trade association for companies working in the global energy industries. Its member companies, who supply goods and services across the oil and gas, power, nuclear and renewable sectors, have the experience and expertise that operators and contractors require. As a not-for-profit organisation with offices in key international locations, EIC's role is to help members maximise commercial opportunities worldwide. We do this in a variety of ways from providing detailed project information and regional market insight; to showcasing specialist skills and connecting suppliers with buyers; through to running tailored training courses and events that inform and engage the industry. The services we offer play an important part in supporting over 600 member companies to do business in a competitive marketplace.
To find out more about EIC and see a full list of members, visit: www.the-eic.com
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