Saudi Arabia close to nuclear deal as US keeps a watchful eye

SAUDI Arabia is reported to be planning a multi-billion-dollar tender next year to build its first two nuclear reactors.

The US is among potential suppliers discussing the project with the world’s top oil exporter, which wants to diversify its energy mix so it can free up more crude for export. But the plans are facing scrutiny in Washington because of potential military uses for the technology.

Saudi Arabia, which aims to mine for uranium, says its plans are peaceful. However, Crown Prince Mohammed bin Salman has said the kingdom would develop nuclear arms if Iran did. US, 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,” a source 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.

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 shortlist. The plans have also been delayed by strained ties with Washington, which criticised Riyadh after the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Turkish consulate in October.

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

Washington is said to be trying to convince Riyadh to sign International Atomic Energy Agency protocols that help verify nuclear technology is used for peaceful applications.