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A Chinese bid for nuclear power in Saudi Arabia? Saudi Arabia is examining a Chinese offer to set up a two-reactor 2.8 GW nuclear power plant in the country, The Wall Street Journal reported on Friday, citing Saudi officials with knowledge of the matter. The move is an attempt by Riyadh to pressure the Biden administration to ease its conditions for assisting the Gulf country in its nuclear energy ambitions, the sources said. The talks come under a plan by Saudi Arabia to award a contract for the facility by the end of the year and a longer term plan to build 16 reactors at an estimated cost of USD 80 bn to USD 100 bn by 2030.
What we know: The bid was submitted by state-owned company China National Nuclear Corp (CNNC) to set up a nuclear facility in the country’s Eastern Province bordering Qatar and the UAE, the sources said. CNNC’s offer is at least 20% less expensive than bids by South Korea’s Kepco and France’s EDF, the officials said. The sources added that KSA would prefer to hire Kepco and involve US operational expertise, but without consenting to the proliferation requirements that Washington demands.
Proliferation requirements? The US wants to ensure that Saudi Arabia does not enrich its own uranium or mine its own uranium deposits in a way to develop nuclear weapons under its nonproliferation conditions. Talks on the two countries have stalled in recent years after they failed to resolve disagreements on Riyadh agreeing to enrichment and reprocessing restrictions and signing an additional protocol by the International Atomic Energy Agency that would allow the UN nuclear watchdog to have access to Saudi Arabia’s nuclear activities.
The kingdom wants the upper hand: The Saudi officials said Saudi Crown Prince Mohammed bin Salman could move forward with CNNC soon if discussions with the US on civil nuclear cooperation falter. Analysts believe the lack of nonproliferation requirements by China could make the country a more advantageous partner to Riyadh.
Why are the Saudis so keen on developing nuclear power? The nuclear plants could help provide emissions-free energy for the Saudi population and slash dependency on oil to give room for crude exports, the sources said. KSA is also concerned about Iran’s nuclear enrichment, with the Saudi crown prince threatening to develop nuclear weapons if Tehran does, they added.
