U.S. and Saudi Arabia Sign Civilian Nuclear Cooperation Agreement
The United States and Saudi Arabia have signed an agreement establishing a legal framework for cooperation on a civilian nuclear energy program. The accord, signed by U.S. Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman, could support a multibillion-dollar, decades-long partnership.
According to the U.S. Department of Energy, the agreement would give American companies access to Saudi Arabia’s developing nuclear market and promote exports of U.S. technology. A separate safeguards agreement was also signed. Wright said the framework is intended to maintain high standards for nuclear safety and nonproliferation.
The deal must be submitted to Congress for review under the Atomic Energy Act, which governs U.S. civilian nuclear cooperation with foreign countries. Some Democratic lawmakers have raised concerns about its regional consequences amid U.S. action against Iran’s nuclear program. Senator Chris Murphy warned that the agreement could encourage a nuclear competition and reduce Iran’s incentive to limit its activities.
Supporters in the nuclear industry say the agreement could expand business opportunities and strengthen energy security. Westinghouse CEO Dan Sumner called it a landmark development. Westinghouse produces the AP1000 reactor, a design used in nuclear expansion. Industry analysts said companies including Westinghouse, Bechtel, BWXT and Centrus could sell equipment to the kingdom.
Jonathan Hinze of nuclear consultancy UxC said the agreement is necessary for U.S. companies to compete in Saudi Arabia. Without it, he said, the kingdom might instead select suppliers from France, Russia or China.
Saudi Arabia currently generates nearly all its electricity from fossil fuels, with about 60% supplied by natural gas and roughly 40% by oil, according to the International Energy Agency. As OPEC’s largest oil producer, the kingdom is seeking to diversify its domestic energy mix while preserving its role in global petroleum markets.