Powering the Future: Riyadh and Tokyo Join Forces for Energy Security, Hydrogen, and Ammonia

Japan: Saudi Arabia has made a strong commitment to ensuring a steady supply of oil for Japan, one of its largest customers. With Japan relying heavily on imports for its energy needs and Saudi Arabia being a major supplier of Crude oil, the two countries have established close ties to ensure a stable and reliable flow of oil. This partnership has allowed Japan to meet its energy demands while also providing economic benefits to Saudi Arabia.

Saudi Arabia has reaffirmed its commitment to Japan as a reliable partner and guaranteed the supply of oil to the country. Prince Abdulaziz bin Salman, the Saudi Energy Minister, made this statement during a meeting with Japan's Prime Minister, Fumio Kishida, in Jeddah. Japan relies heavily on oil imports, and Saudi Arabia is the country's biggest oil exporter, fulfilling 40% of its total needs. Kishida is also set to visit the United Arab Emirates and Qatar as part of his Middle East tour.

Japan and the Gulf Cooperation Council (GCC) have resumed talks on a free trade agreement, following a call from the Japan Business Federation last December to resume negotiations. The two sides announced the resumption of negotiations in July 2023, with the aim of removing barriers to trade and increasing investment flows between Japan and the GCC. As Japan's largest supplier of Crude oil, the GCC is an important economic partner for Japan, which relies heavily on imports to meet its energy needs. The FTA negotiations are expected to cover a range of issues, including trade in goods and services, government procurement, and competition policy.

Saudi Arabia's energy ministry and Japan's industry and trade ministry have signed multiple agreements to strengthen their partnership beyond oil. The agreements were signed by Prince Abdulaziz, Saudi Arabia's energy minister, and Yasutoshi Nishimura, Japan's Minister of Economy, Trade and Industry, during a visit to Saudi Arabia by Minister Nishimura. The agreements cover a broad range of areas, including investment, cooperation on clean energy and the circular carbon economy, and the construction of an Ammonia plant by Saudi Aramco. This partnership between Saudi Arabia and Japan is expected to diversify global supply chains and contribute to the development of sustainable solutions for the energy sector.

It has been reported that the collaboration between Japan and Saudi Arabia is expected to result in joint development projects related to rare earth resources. During Japanese Prime Minister Fumio Kishida's visit to Saudi Arabia, he and Crown Prince Mohammed bin Salman expressed their interest in exploring such initiatives in other countries. Rare earths are crucial in the manufacturing of high-tech goods like electric vehicles and smartphones. The agreement is expected to strengthen the economic partnership between the two nations and promote sustainable development. Additionally, Kishida is also set to discuss energy markets and offer Japanese technology for net zero transition.