Saudi Arabia and Pakistan Strengthen Strategic Partnership in Energy Sector
Saudi Arabia is set to deepen its strategic partnership with Pakistan through talks on refinery upgrades and a greenfield project for petroleum products, according to an official.
Collaboration Beyond Energy Projects
Speaking to Arab News on the sidelines of the World Investment Conference held in Riyadh, Musadik Malik, senator and minister of state for petroleum of Pakistan, noted that the collaboration extends beyond energy projects and includes an agreement to connect power grids between the two nations.
Future Energy Needs and Renewable Opportunities
“We are working very closely with the Kingdom to figure out how, what are the future energy needs, particularly in the area of renewables, and jointly, we’re going to identify and scope the opportunity, and jointly we’re going to build a program to fulfill those needs,” Malik said.
Projects Under Research and Negotiation
He continued: “We have two different projects which are right now under, to say, research.
One is the upgradation of quantifier refineries, and the other is a large greenfield refinery which would not only produce petroleum products but also hydrocarbons. These are under research and negotiation, so these are not finalized.”
Proactive Planning for Long-Term Energy Needs
Malik highlighted that the partnership goes beyond just securing investments or transferring advanced technology. Instead, it involves a joint effort to carefully analyze Pakistan’s future energy needs and map out potential scenarios for how these demands might evolve over time.
Private-Sector Collaborations and Tangible Results
Saudi Arabia and Pakistan are making significant strides in strengthening private-sector collaborations, with multiple agreements already yielding tangible results.
Significant Deals and Contracts in Motion
The minister added that around $2.8 billion worth of memorandums of understanding have been signed between the two countries in October.
“Out of these 28 to 30 MOUs, seven or eight have already been converted into contracts and executed within just three to four months,” Malik said.
Addressing Energy Demand Fluctuations
Pakistan is tackling the challenge of energy demand fluctuations, a longstanding issue where consumption peaks in summer and drops to a third during winter.
Unified Energy Market and Regional Alignments
The initiative also aligns with regional energy strategies, as Pakistan seeks similar arrangements with Central Asian states.
Saudi Arabia: A True and Steadfast Ally
Malik concluded the interview by praising Saudi Arabia’s unwavering support for Pakistan, describing the Kingdom as a true and steadfast ally.