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Saudi Arabia and Japan Strengthen Cooperation in Crude Exports and Clean Hydrogen

Anela DoksoBy Anela Dokso17/07/20232 Mins Read
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Saudi Arabia, the world’s largest oil exporter, reaffirms its commitment to collaboration with Japan in various areas, including crude exports and clean hydrogen.

The energy minister, Prince Abdulaziz bin Salman, highlighted the kingdom’s dedication to ensuring the security of oil supplies to Japan, which relies on Saudi Arabia for 40% of its oil imports. Additionally, the two countries aim to foster joint cooperation in the field of clean hydrogen and develop infrastructure for circular carbon economy applications. This partnership holds significance as Japan seeks to enhance its energy security and diversify its energy mix with renewable resources.

Recognizing the importance of energy security, Saudi Arabia and Japan have established a high-level dialogue to address Tokyo’s concerns. Japan is actively working to secure long-term liquefied natural gas (LNG) agreements and expand its renewable energy portfolio. With growing demand and competition for LNG globally, Japan is making strategic moves to safeguard its energy supply and reduce reliance on fossil fuels.

Both countries recognize the potential of clean hydrogen as a sustainable energy source and are committed to its development. The focus lies on harnessing the benefits of hydrogen across various applications and developing the necessary infrastructure. The circular carbon economy, which promotes the recycling and reuse of carbon emissions, is another area of mutual interest for Saudi Arabia and Japan. By collaborating on these initiatives, they aim to contribute to global efforts in mitigating climate change and promoting sustainable development.

Saudi Arabia’s shipment of independently certified low-carbon ammonia to Japan represents a significant milestone in clean energy solutions. Produced by Sabic Agri-Nutrients with feedstock from Saudi Aramco, the ammonia offers a low-carbon fuel option for industries including power generation, transportation, and manufacturing. The potential use of 100 million tonnes of low-carbon ammonia as feedstock in power plants by 2050 demonstrates the scalability and environmental benefits of this alternative fuel.

The energy minister highlighted the numerous opportunities for cooperation between Saudi Arabia and Japan in the petrochemical sector. With the rapid growth of the petrochemical industry, both countries can leverage their strengths and expertise to further advance this sector and explore innovative solutions.

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