Reasons of change

[webfact]

Interview: Saudi Arabia hopes to start nuclear pact talks with U.S. in weeks - minister

By Rania El Gamal and Katie Paul

 

FILE PHOTO: Saudi Arabia's Oil Minister Khalid al-Falih addresses a news conference after an OPEC meeting in Vienna, Austria, November 30, 2017. REUTERS/Heinz-Peter Bader/File Photo

 

RIYADH (Reuters) - Saudi Arabia aims to start talks with Washington within weeks on an agreement to allow U.S. firms to participate in its nascent civilian nuclear energy programme, with the first tender expected in 2018, the kingdom's energy minister said on Wednesday.

 

Saudi Arabia is interested in reaching a civilian nuclear cooperation agreement with Washington, and Riyadh has invited U.S. firms to take part in developing the kingdom's first atomic energy programme.

 

The world’s top oil exporter wants nuclear power to diversify its energy supply mix, enabling it to export more crude rather than burning it to generate electricity.

 

"We've indicated with our American partners that we intend to localise the entire value chain with nuclear energy in the Kingdom of Saudi Arabia," Energy Minister Khalid al-Falih told Reuters in an interview.

 

"We hope that through the negotiations that will be taking place over the next few weeks with our American partners that we will find common ground that will allow the American government to meet the intent of American law."

 

Washington usually requires a country to sign a peaceful nuclear cooperation pact - known as a 123 agreement - that blocks steps in fuel production with potential bomb-making applications before U.S. technology can be used.

 

Riyadh has said it wants to tap its own uranium resources for "self-sufficiency in producing nuclear fuel" and it was not interested in diverting nuclear technology to military use.

 

In previous talks, Saudi Arabia has refused to sign up to any agreement that would deprive it of the possibility of one day enriching uranium.

 

Riyadh sent a request for information to nuclear reactor suppliers in October in a first step towards opening a multi-billion-dollar tender competition for two nuclear power plants.

 

It plans to build 17.6 gigawatts (GW) of nuclear capacity by 2032, the equivalent of around 16 reactors, making it one of the biggest prospects for an industry struggling after the 2011 nuclear disaster in Japan.

 

CONTRACTS

 

Falih said earlier on Wednesday that he expected to sign contracts to build two nuclear reactors by the end of 2018.

 

Falih told Reuters he hoped that American companies will participate in front-end engineering studies, which will start in the next few weeks, and ultimately compete for the contracts.

 

He said Saudi Arabia was committed to using the programme for peaceful purposes, but was also committed to extracting uranium domestically and developing the nuclear energy sector as an industry.

 

"We have large resources of uranium that we are exploring and we are extremely encouraged," he said.

 

"Whatever we do is going to be under strict compliance with international agreements," said Falih. "But we will not deprive ourselves of accessing our natural resources and localising an industry that we intend to be with us for the long term."

 

"We're going to harvest our resources, we're going to localise and we're going to develop the technology just as we've done with oil and gas."

 

Reuters has reported that Toshiba-owned Westinghouse and two other U.S.-based companies are in talks to form a consortium to bid on the project and are pushing Washington to restart talks with Riyadh on a civil nuclear cooperation pact.

 

The Trump administration briefed congressional staff last week on how the White House was considering non-proliferation standards in a potential pact to sell nuclear reactor technology to Saudi Arabia, but did not indicate whether allowing uranium enrichment would be part of any deal, congressional aides said.

 

U.S. Energy Secretary Rick Perry visited Saudi Arabia earlier this month, telling Reuters that new talks between the two allies on a 123 agreement would start soon.

 

Uranium fuel for reactors is enriched to only about 5 percent, lower than the 90 percent level for fissile material in nuclear bombs.

 

(Editing by Adrian Croft)

 

-- © Copyright Reuters 2017-12-21

[ilostmypassword]

Sounds like a great idea. I mean it's not like Saudi Arabia has an impulsive, bellicose leader.

[FritsSikkink]

Why would they need nuclear energy when they have huge empty spaces where they can use sun energy. 

[ilostmypassword]

3 minutes ago, FritsSikkink said:

Why would they need nuclear energy when they have huge empty spaces where they can use sun energy. 

Good point. Especially given the huge advances in solar energy efficiency. There is also wind power but I don't know how favorable conditions are in SA for exploiting that.

[tonray]

50 minutes ago, FritsSikkink said:

Why would they need nuclear energy when they have huge empty spaces where they can use sun energy. 

It's not about energy it's about business and contracts and kickbacks and the price of oil. This is a way to get the US to back off on shale production, "We'll sign long term contracts for Nuclear, if you consider slowing the shale industry".  They really don't need the US for nuclear because the French will build plants and offer technology with no pre-conditions such as the US demands.

[Biikqth]

I suspect the Saudis reason is more to do with Iran’s nuclear program and being able to protect and project their interests in the Middle East.

[tonray]

27 minutes ago, Biikqth said:

I suspect the Saudis reason is more to do with Iran’s nuclear program and being able to protect and project their interests in the Middle East.

Yes...hit the nail right on the head. They are essentially making an implied threat saying that if Iran ever develops a weapon, they will have the capability (irregardless of the agreements not to) of producing one in short order too.

[natway09]

Many ulterior motives here & the US have always "flip flopped" on Saudi.

Personally  I would not trust the Saudi's  to lie straight in bed

[BuaBS]

3 hours ago, tonray said:

They really don't need the US for nuclear because the French will build plants and offer technology with no pre-conditions such as the US demands.

Or the Russians or the Chinese .

[Andaman Al]

10 hours ago, FritsSikkink said:

Why would they need nuclear energy when they have huge empty spaces where they can use sun energy. 

Because you cannot later build nuclear weapons out of old solar panels---well you could try, but don't attack your enemy on a cloudy day.

[Morch]

10 hours ago, ilostmypassword said:

Sounds like a great idea. I mean it's not like Saudi Arabia has an impulsive, bellicose leader.

 

Sounds like you are playing the same old record again, in lieu of anything else to offer. Guess it's alright for the likes of NK's Kim, though.

[ilostmypassword]

25 minutes ago, Morch said:

 

Sounds like you are playing the same old record again, in lieu of anything else to offer. Guess it's alright for the likes of NK's Kim, though.

You must have meant to post to a different thread. This one is about Saudi Arabia, not North Korea. Or are you purposely trying to hijack this thread?

[Morch]

Just now, ilostmypassword said:

You must have meant to post to a different thread. This one is about Saudi Arabia, not North Korea. Or are you purposely trying to hijack this thread?

 

Nah, I think you already did that from the outset. But of course, for you any mention of Saudi Arabia is a good enough reason to beat the same old drum.

[ilostmypassword]

2 minutes ago, Morch said:

 

Nah, I think you already did that from the outset. But of course, for you any mention of Saudi Arabia is a good enough reason to beat the same old drum.

Yes because it's not the Crown Prince who's behind this but the defacto leader of Saudi Arabia. Can you remind me who that is?

[Morch]

9 hours ago, ilostmypassword said:

Yes because it's not the Crown Prince who's behind this but the defacto leader of Saudi Arabia. Can you remind me who that is?

 

Saudi Arabia's aspirations regarding nuclear energy and related efforts predate the Crown Prince's ascent to power. As far as I am aware, interested parties did not cite the underlying theme of your obsessive nonsense crusade. If expressed concern you aired was genuine rather than a petty, partisan sentiment, it would perhaps be applied with regard to other situations regionally and globally. That is not the case.

[ilostmypassword]

14 minutes ago, Morch said:

 

Saudi Arabia's aspirations regarding nuclear energy and related efforts predate the Crown Prince's ascent to power. As far as I am aware, interested parties did not cite the underlying theme of your obsessive nonsense crusade. If expressed concern you aired was genuine rather than a petty, partisan sentiment, it would perhaps be applied with regard to other situations regionally and globally. That is not the case.

And I always dreamed of getting a pony for Christmas. But I never took any concrete steps to get  one. And it's clear how tenuous your grasp is of the situation in Saudi Arabia if you don't think this push to do a nuclear deal with the USA doesn't have the Crown Prince's fingerprints all over it.