Japan and Saudi Arabia Strengthen Relations in Energy Sector
As the world shifts towards new energy sources, Japan and Saudi Arabia are strengthening their ties in the energy sector. The research department of the Japan Organization for Metals and Energy Security collaborated with KAPSARC, an energy think tank in Saudi Arabia, for joint workshops last summer.
Key Projects in Petrochemical Industry
Toyoda Kohei from JOGMEC’s Energy Research Division highlighted the importance of the petrochemical project in Petro Rabigh, a partnership between Saudi Aramco and Sumitomo Chemical. This project has been supplying petroleum and petrochemical products since 2005, with engineering companies and tourism and entertainment companies also entering the market in Saudi Arabia.
Joint Oil Stockpiling Projects
Japan and Saudi Arabia are collaborating on joint oil stockpiling projects, where Japan lends private oil tanks to Saudi Aramco in case of emergency. This project not only enhances Japan’s energy security but also benefits Saudi Aramco’s oil sales in Asia.
Shared Vision for Energy Transition
Despite their differing resource availability, Japan and Saudi Arabia share a vision for a realistic energy transition. While both countries acknowledge the importance of fossil fuels, they are also exploring renewable energy projects like hydrogen and ammonia.
Expanding Relationship Beyond Energy
Although the focus has traditionally been on oil production and exports, Japan and Saudi Arabia are looking to expand their relationship beyond the energy sector. Private companies are exploring investment opportunities in other sectors within Arab countries to strengthen ties with the region.