Saudi plans to invite bids for nuclear power project in 2020: sources

[The SC]

April 4, 2019

DUBAI/RIYADH (Reuters) - Saudi Arabia plans to issue a multi-billion-dollar tender in 2020 to construct its first two nuclear power reactors and is discussing the project with U.S. and other potential suppliers, three sources familiar with the plans said.

The world’s top oil exporter wants to diversify its energy mix, adding nuclear power so it can free up more crude for export. But the plans are facing Washington’s scrutiny because of potential military uses for the technology.

Saudi Arabia, which aims to mine for uranium, says its plans are peaceful. But Crown Prince Mohammed bin Salman said in 2018 the kingdom would develop nuclear arms if Iran did.
U.S., Russian, South Korean, Chinese and French firms are in talks with Riyadh to supply reactors, a promising deal for an industry recovering from the 2011 Fukushima nuclear disaster.

“Saudi Arabia is continuing to make very deliberate steps forward although at a slower pace than originally expected,” one of the sources familiar with the plans told Reuters.

Saudi officials previously said they aimed to select a vendor in late 2018, which then slipped to 2019. The sources said the tender would now be issued in 2020.

Two sources said the project was proceeding slowly partly because the kingdom was still in discussions with all potential suppliers rather than narrowing them down to a short list.

The plans have also been delayed by strained ties with Washington, which criticized Riyadh after the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate in October, a source familiar with the talks said.

Riyadh needs to sign an accord on the peaceful use of nuclear technology with Washington to secure the transfer of U.S. nuclear equipment and expertise, under the U.S. Atomic Energy Act. U.S. Energy Secretary Rick Perry said last week that the negotiations which began in 2012 were continuing.

The source said Washington has also been seeking to convince Riyadh to sign the International Atomic Energy Agency’s Additional Protocol on extra safeguards for verifying nuclear technology is used for peaceful applications. The kingdom has so far resisted, the source added.

The fate of these negotiations could determine whether Riyadh reaches a deal with U.S. firms, the source said.

WORKSHOPS


Saudi Arabia, which sent a “request for information” (RFI) to nuclear vendors in 2017, is holding workshops with vendors from five nations as part of the pre-tender process, one source said, adding that this was expected to last 12 to 15 months.

The King Abdullah City for Atomic and Renewable Energy (KACARE), tasked with developing the nuclear program, has brought in an executive from oil giant Saudi Aramco to help manage the pre-tender consultancy process, two sources said.

The Energy Ministry, overseeing the project, and the kingdom’s international press office did not respond to Reuters requests for comment.

KACARE has in the past said the kingdom was considering building 17.6 gigawatts of nuclear capacity by 2032, requiring about 16 reactors. But the sources said the focus for now was on the first two reactors and a potentially smaller program.

Neighboring United Arab Emirates is building a nuclear power plant, the first in a Gulf Arab state. Iran, across the Gulf, has a nuclear plant in operation and has been locked in a row over its nuclear ambitions with the United States.

Saudi Arabia, which has long vied with Iran for regional influence, has said it will not sign any deal with the United States that deprives the kingdom of the possibility of enriching uranium or reprocessing spent fuel in the future, both potential paths to a bomb.

South Korea’s state-owned Korea Electric Power Corp (KEPCO), Russian state nuclear group Rosatom, French utility EDF, state-run China National Nuclear Corp and U.S. Westinghouse have expressed interest in the Saudi project.


https://www.reuters.com/article/us-...r-power-project-in-2020-sources-idUSKCN1RG1LL

 

[Sinnerman108]

Now the folks who will get those contracts will be the ones who are being nice to Saudi.

 

[The SC]

Now the folks who will get those contracts will be the ones who are being nice to Saudi.

Nice in away that means there are very specific Saudi requirements.. but it has nothing to do with being nice.. it is a bid which means it is a business deal..it has more to do with providing a product and service that fits the specs and requirements..

 

[timmy_area51]

canadian cold makes you paranoid just like the saudi heat

 

[Mithridates]

saudis are developing ballistic missiles too. i'm wondering why??

 

[Sinnerman108]

Nice in away that means there are very specific Saudi requirements.. but it has nothing to do with being nice.. it is a bid which means it is a business deal..it has more to do with providing a product and service that fits the specs and requirements..

Dude,

there is noting wrong with having a diplomatic strong position.
Saudi Arabia has money to spend,
there are more than one suppliers of nuclear plants.
So if Saudi Arabia chooses one over other, then Saudi Arabia will have and exercise the leverage.

This is how the world works, and I don't expect Adil Jubair to play any less.

 

[The SC]

Dude,

there is noting wrong with having a diplomatic strong position.
Saudi Arabia has money to spend,
there are more than one suppliers of nuclear plants.
So if Saudi Arabia chooses one over other, then Saudi Arabia will have and exercise the leverage.

This is how the world works, and I don't expect Adil Jubair to play any less.

I understand what you are saying.. it all good..just remember that this is a bid.. so the best bidder according to Saudi specs and requirements will win these two first reactors.. there are 14 others to be constructed and there will be bids for them too..I think Russia will win at least four, since it is willing to provide very advanced nuclear technologies, South Korea will win another four.. all this depends on the participation of the US or not..if it wins this first round.. it might win the building of another 6 reactors.. and by bidding it has shown it is willing to participate..

Here are some very important points some people are not aware of:

1) Saudi Arabia has the right to exploit its wealth. It is not reasonable to have the 6% of world's Uranium reserves
and go buy it from abroad. On the contrary, KSA will enrich and exploit its wealth for its own sake. It might also sell enriched uranium to countries that have nuclear reactors but do not enrich Uranium on their soil.

2) Local uranium enrichment is part of the national security of the state. How do I build nuclear reactors, produce electricity and desalinate water through it, and all my projects and the rise of my country will be based on this energy and then I will give my neck to others who whenever they want to cut off enriched uranium might do it, so my reactors and projects will become useless and of no value buildings! I mean, imagine that the Saudi oil spout is in the hands of the US, and whenever it gets angry it cuts it, will my Oil keep it value the value of the time, or will I have sovereignty, national security and independence, if I am in the hands of other countries?
This is why Saudi Arabia insists on enriching uranium and strongly rejects any conditions or measures that threaten the sovereignty and security of the nation.

3) (Very important): Saudi Arabia's main objective is to acquire advanced US technology and at the same time to get a US cover and create pressure cards through US nuclear companies to counter any political pressure on the Saudi nuclear program by the US in the future.
Of course the alternatives are available and have been activated already with several countries and the project as a whole is not limited to the US only, there are many countries contributing to it, but KSA want to involve the US in the project to avoid any obstacles, including any future Saudi goals like Uranium enrichment and Plutonium processing for example.