Saudi Arabia’s switch to renewables could save it $ 200 billion

Saudi Arabia could save some $ 200 billion over the next decade by switching from crude oil to natural gas and renewables for power generation, Reuters reports, quoting the Kingdom’s finance minister.

“Instead of buying fuel in international markets for $ 60, then selling it for $ 6 for Saudi utilities, or using part of our OPEC quota to sell it for $ 6, we are actually moving at least 1 million barrels of oil a day. equivalent in the next 10 years and replace it with gas and renewables, ”said Mohammed al-Jadaan.

OPEC’s largest oil producer and the world’s largest exporter of crude is desperate to reduce its dependence on oil revenues by diversifying its economy away from the flagship export stock. Earlier this year, Crown Prince Mohammed, who appears to be the de facto ruler of Saudi Arabia, announced another investment program for this diversification which he said would “unlock new local investments valued at 5 trillions of SAR until the end of 2030.. “

This amount is equivalent to approximately $ 1.3 trillion, and its release will be made possible by investments from Saudi Arabia‘s largest private companies, the Kingdom’s Public Investment Fund and a national investment strategy, including details have not yet been released. Total investment in the Saudi private sector will amount to some $ 3.20 trillion (12 trillion riyals).

The Vision 2030 diversification plan that Mohammed launched a few years ago is also alive and well, according to Al-Jadaan. The minister said the Kingdom will prioritize fiscal discipline until all the goals of the Vision 2030 plan are met.

“By 2025, and possibly until 2030, fiscal sustainability is a priority for us. We believe that until we achieve all of the targets set by Vision 2030, we must maintain fiscal sustainability and control public spending, ”Al-Jadaan said. .

By Irina Slav for Oil Octobers

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