Saudi Arabia, Yemen sign $150 million petroleum supply deal to support energy sector, power plants

RIYADH — A Saudi-Yemeni agreement, valued at 150 million, was signed on Tuesday to supply petroleum derivatives for power plants across various Yemeni governorates. The agreement signing was part of Saudi Arabia’s support through the Saudi Development and Reconstruction Program for Yemen (SDRPY) to the Yemeni Ministry of Electricity and Energy. Under the patronage of Yemeni Prime Minister Dr. Shaya Mohsin Zindani, the agreement was signed by Yemeni Minister of Electricity and Energy Eng. Adnan Al-Kaf and Saudi Ambassador to Yemen and SDRPY General Supervisor Mohammed bin Saeed Al Jaber in Riyadh. On May 28, Saudi Arabia announced this urgent support in the form of petroleum derivatives in line with the directives of Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed bin Salman, and the follow-up of Minister of Defense Prince Khalid bin Salman. The petroleum derivatives support, consisting of diesel and mazut, will fuel more than 70 electricity generation plants across various Yemeni governorates, helping enhance the stability and continuity of electricity services and support vital sectors linked to electrical energy. The support reflects Saudi Arabia’s longstanding commitment to supporting the Yemeni people and alleviating their humanitarian suffering, particularly amid rising temperatures. It is also expected to contribute to stimulating commercial activity, creating job opportunities, and promoting economic growth in Yemen.An additional agreement was also signed between the Yemeni oil company PetroMasila, the Yemeni Ministry of Electricity and Energy, and SDRPY to support the sustainability of PetroMasila’s operations as a state-owned company, strengthening its capabilities, improving operational efficiency, and ensuring continuity of services in support of the Yemeni government.The initiative is implemented under a comprehensive governance framework to ensure that assistance reaches the final beneficiaries, through a supreme committee linked to the prime minister and comprising several Yemeni entities responsible for overseeing and monitoring the distribution of petroleum derivatives to power plants based on the identified needs of electricity generation facilities across Yemeni governorates.SDRPY provided petroleum derivatives grants in 2018 valued at 180 million, a grant in 2021 worth 422 million, an additional grant in 2022 amounting to 200 million, and a grant in 2026 valued at 81.2 million. The current 150 million grant comes amid rising temperatures and an urgent need to improve electricity service quality, contributing to better daily life and living standards for the Yemeni people.