meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi nuclear move has geopolitical significance

28 February 2023

Commentary

Jennifer Aguinaldo

Energy & technology editor

Saudi Arabia's Finance Ministry’s disclosure that it received bids late last year for the contract to build the kingdom's first nuclear power plant is major energy news with potential widespread geopolitical significance.

The bids came in weeks before Foreign Affairs Minister Prince Faisal bin Farhan al-Saud told a security conference in Munich that he could not rule out a regional nuclear arms race.

“If one state gets nuclear weapons, especially one that has expressed aggression towards its neighbours, I think everyone will start thinking about how to protect themselves,” Prince Faisal said in reference to Iran’s programme and the need for negotiations between Tehran and world powers to resume.

READ: Top nuclear projects to watch this year

Assuming the bids are for the large-scale nuclear power plant that Riyadh has been planning for since 2016, the list of companies that submitted a bid for the contract is tightly guarded.

Five companies were understood to have requested information on the project from King Abdullah City for Atomic & Renewable Energy (KA-Care) in 2017, including the US firm Westinghouse, France’s EDF and Russia’s Rosatom. South Korea’s Kepco and China National Nuclear Corporation also responded to the request for qualifications for the main contract. 

More recent, unconfirmed developments suggest that Westinghouse and possibly EDF may no longer be in the race, leaving three companies at the table.

Washington worried

Washington is wary of the contract being awarded to Chinese or Russian contractors. This would weaken or render irrelevant its demands for Riyadh to abandon its nuclear fuel cycle ambitions before signing any bilateral nuclear cooperation agreement (NCA), otherwise known in Washington as a 123 agreement.

According to an Energy Intelligence report, the stalemate centres around Washington’s demands for Saudi Arabia to make a commitment to the NCA not to pursue a domestic uranium enrichment or reprocessing programme. The US also wants the kingdom to sign and ratify the International Atomic Energy Agency’s Additional Protocol (IAEA AP), allowing nuclear inspectors fuller access to Saudi's nuclear programme.

The report alludes to the US supporting Kepco’s bid, not only to keep Riyadh away from its geopolitical adversaries but because it provides Washington with a final lever for pressuring Riyadh to accept its conditions for the 123 agreement and/or the IAEA protocol.

The topic was understood to be a key item on US President Joe Biden’s agenda during his trip to Riyadh in July, which yielded unclear results.

Crucially, Saudi Energy Minister Prince Abdulaziz bin Salman al-Saud announced in January last year that Saudi Arabia has uranium resources that it wants to exploit transparently through partnerships.

UAE role

Some say that the UAE – whose Barakah nuclear power plant was built by Kepco and which has signed a 123 agreement with the US – is backing the South Korean firm’s bid.

Tellingly in November, the US and UAE governments signed the $100bn Partnership for Accelerating Clean Energy (Pace) programme. Analysts say this could shift the two countries’ energy cooperation more towards nuclear energy, with the UAE aiming to position itself as an investor in regional and developing economies’ nuclear power.

Then in January, the UAE pledged to invest $30bn in South Korea’s nuclear power, defence, hydrogen and solar energy industries. They also announced plans to deepen their nuclear cooperation with Korea Hydro & Nuclear Power (KHNP) and Emirates Nuclear Energy Corporation (Enec) signing a deal to “expand practical cooperation in the field of developing export markets for nuclear power plants in third countries and joint procurement of business finance”.

As industry insiders speculate on what will happen next, all eyes will be on Riyadh to see if it makes an official announcement to award the contract, which a Saudi-based expert says can only be made by the highest levels of the country’s leadership.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10635817/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Dubai plans EPC tender for Warsan sewage treatment plant

    25 February 2026

     

    Register for MEED’s 14-day trial access 

    Dubai Municipality is preparing to tender the main construction package for the Warsan sewage treatment plant (STP) by the end of the year, according to sources close to the project.

    The scheme is linked to the deep sewerage tunnels infrastructure programme being implemented by the municipality’s sewerage and recycled water projects department.

    As MEED understands, the Warsan STP had previously been expected to be procured as a public-private partnership (PPP) scheme.

    However, sources confirmed that the main construction package will now be procured as an engineering, procurement and construction (EPC) contract.

    The project involves the construction of a sewage treatment plant with a capacity of about 175,000 cubic metres a day (cm/d), including treatment units, sludge handling systems and associated infrastructure.

    The plant, estimated to cost about $326m, will be developed at the existing Warsan complex, where the municipality is also progressing separate expansion and rehabilitation packages.

    These include Warsan STP Phase 1 (DS-355/1), which involves sewerage and stormwater network upgrades, and Stage 2 of the Al-Warsan sewage treatment plant (DS-203/2), comprising new treatment units

    Kuwait-headquartered Mohammed Abdulmohsin Al-Kharafi & Sons is the main EPC contractor for both projects.

    Separately, the municipality is also progressing the expansion and upgrade of the first and second phases of the Jebel Ali STP.

    The upgraded facility will be capable of treating an additional sewage flow of 100,000 cm/d.

    Earlier this month, contractors were invited to prequalify for the contract.

    The bid submission deadline is 2 April.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15765751/main.jpg
    Mark Dowdall
  • Aramco firm and Arcapita sign logistics facility deal

    25 February 2026

    Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has signed an agreement with Bahrain‑headquartered Arcapita Group Holdings to deliver a 1.4-million-square-metre (sq m) built-to-suit logistics complex at King Salman Energy Park (Spark).

    The project will feature a 43,000 sq m temperature-controlled, Grade A warehouse, more than 3,000 sq m of office and staff amenities, 5,300 sq m dedicated to chemical storage, and an open yard spanning about 1.2 million sq m.

    Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.

    It will also be developed in line with internationally recognised sustainability standards, featuring solar (photovoltaic) readiness, EV charging infrastructure and a target of LEED Gold certification.

    The development is aimed at supporting the next stage of Saudi Arabia’s logistics and supply chain expansion.

    Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.

    According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.

    Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy (NTLS) under Saudi Vision 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15765085/main.gif
    Yasir Iqbal
  • Algeria gives bidders more time for 1.2GW plant

    25 February 2026

    Algeria’s state-owned electricity and gas utility Sonelgaz has extended the bid submission deadline for a contract to build a 1,200MW combined-cycle gas-fired power plant in Adrar.

    The project is being procured through Sonelgaz’s power generation subsidiary, Societe Algerienne de l’Electricite et du Gaz – Production de l’Electricite (SPE).

    The new bid submission deadline is 29 April. The main contract was first tendered in April last year, and the deadline has been extended several times since.

    The latest deadline was 26 February.

    The tender is open to local and international companies with experience in delivering large-scale power generation projects and with sufficient technical and financial capacity.

    Algeria’s wider power sector has experienced periods of limited contract activity in recent years. Between 2018 and 2022, virtually no new solar or wind farm contracts were awarded, according to available data from the regional projects tracker MEED Projects.

    In 2023, Sonelgaz Energie Renouvelables, a subsidiary of Algeria’s state-owned utility, awarded 14 of the 15 solar photovoltaic (PV) packages it tendered that year.

    At the time, MEED reported that the 15 packages had a total combined capacity of 2,000MW, requiring at least AD172bn ($1.2bn) of investment.

    However, publicly available data suggests that progress has been slow with several schemes yet to reach full construction or commercial stages.

    Gas-fired combined-cycle plants continue to account for the majority of Algeria’s electricity generation capacity. Data from MEED Projects indicates that more than 5,000MW of oil- and gas-fired power capacity is currently under construction.

    Despite this, new contract awards in 2025 came from three solar schemes.

    This included the construction of a 154MW solar PV plant in Bechar, for which China Power was appointed main contractor in August.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15765079/main.jpg
    Mark Dowdall
  • Riyadh tenders Line 7 metro project management deal

    25 February 2026

     

    Register for MEED’s 14-day trial access 

    The Royal Commission for Riyadh City (RCRC) has issued a tender inviting firms to bid for a contract for project management consultancy services for the construction of Riyadh Metro Line 7.

    MEED understands that RCRC has allowed firms until March to submit their proposals.

    The latest development follows contractors submitting bids on 31 January for a contract to design and build the project.

    The project involves constructing a metro line linking the Qiddiya entertainment city development, King Abdullah International Gardens, King Salman Park, Misk City and Diriyah Gate. The total length of the line will be about 65 kilometres (km), of which 47km will be underground and 19km will be elevated.

    The line will have 19 stations, 14 of which will be built underground and five above ground.

    Riyadh Metro’s first phase features six lines with 84 stations. The RCRC completed the phased roll-out of the Riyadh Metro network when it started operating the Orange Line in January this year.

    Construction has also begun on the next phase of Riyadh Metro, the extension of Line 2.

    In July last year, MEED exclusively reported that RCRC had awarded an estimated $800m-$900m contract for the project.

    The contract was awarded to the Arriyadh New Mobility Consortium, led by Italy’s Webuild. 

    The group also includes India’s Larsen & Toubro, Saudi Arabia’s Nesma & Partners and France’s Alstom.

    Line 3, also known as the Orange Line, stretches from east to west, from Jeddah Road to the Second Eastern Ring Road, covering a total distance of 41km. 

    The line spans 8.4km, of which 1.3km is elevated and 7.1km is underground. It includes five stations – two elevated and three underground.

    It will run from the current terminus of Line 2 at King Saud University (KSU) and continue to new stations at KSU Medical City, KSU West, Diriyah East and Diriyah Central – where it will interchange with the planned Line 7 – before terminating at Diriyah South.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15764750/main.png
    Yasir Iqbal
  • Six companies prequalify for Algeria gas contract

    25 February 2026

    Register for MEED’s 14-day trial access 

    Six companies have prequalified for a contract that is part of a project to connect the liquefied natural gas (LNG) storage and loading lines of the gas complexes known as GL1Z and GL2Z, according to a statement issued by Algeria’s state-owned oil and gas company Sonatrach.

    The two complexes are part of Sonatrach’s Arzew LNG hub.

    The scope of work for the contract is focused on the execution of the basic engineering study for the project.

    The six companies that have prequalified for the project are:

    • JGC (Japan)
    • McDermott (US)
    • Synergy Engineering (Indonesia)
    • ExidaSP (UAE)
    • EPPM (Tunisia)
    • Enreco (Italy)

    In its statement, Sonatrach said: “Following the review of applications, the companies … have been prequalified and will be invited to participate and submit bids in the selective consultation.”

    The Arzew LNG hub is Algeria’s main LNG export centre, located near the port town of Arzew, about 40 kilometres east of Oran on the Mediterranean coast.

    Sonatrach is currently implementing several projects to upgrade facilities within the hub.

    In October last year, MEED revealed that the gas train known as T-300 had been brought back online at the site.

    The train was brought back online after a new main cryogenic heat exchanger (MCHE) was commissioned.

    The upgrade was part of a broader contract with US-based Honeywell to replace four MCHEs at GL1Z.

    The contract was originally signed with Air Products, and Honeywell acquired the contract when it bought Air Products’ LNG process technology and equipment business in September 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15762638/main.png
    Wil Crisp