Saudi Arabia sees over $200bn in savings from energy reforms plan

Saudi Arabia sees over $200bn in savings from energy reforms plan

DUBAI: Saudi Arabia could save over $200 billion over the next decade by replacing liquid fuel used for domestic consumption with gas and renewable energy sources, the finance minister said, as the kingdom seeks to cut costs to fund investments. The world's top oil exporter has embarked on an ambitious reforms program in recent years to modernize its economy, create jobs, and reduce its dependence on oil revenues. "One initiative we're about to finalize is the displacement of liquids," said Finance Minister Mohammed Al-Jadaan. "This program would represent savings for the government of about 800 billion riyals ($213. 34 billion) over the next 10 years which can be utilized for investment." Saudi Arabia this month signed power purchase agreements with seven new solar projects, part of plans to optimize the energy mix used for electricity production. "Instead of buying fuel from the international markets at $60 and then selling it at $6 for Saudi utilities, or using some of our quota in OPEC to sell at $6, we're going to actually displace at least 1 million barrels a day of oil equivalent in the next 10 years and replace it with gas and renewables," said Jadaan. Hit hard by lower