Saudi Arabia signs 30-year US nuclear pact, targets 1 million b/d oil displacement

September 2, 2026 at 05:00 AM2 min

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Saudi Arabia signed a 30-year civil nuclear cooperation agreement with the United States on July 22, clearing the way for U.S. companies to supply reactors and nuclear services. The kingdom aims to displace more than 1 million barrels per day of liquid fuel used in power generation, desalination, industry and agriculture by 2030. Natural gas and renewables are expected to provide most of the replacement energy, while nuclear power is unlikely to contribute materially before 2030.

Key Facts

Saudi Arabia's power stations, desalination plants, factories and farms consume more than 1 million barrels per day of liquid fuel that the kingdom aims to displace by 2030.
On July 22, the United States and Saudi Arabia signed a 30-year civil nuclear cooperation agreement.
The IEA estimates Saudi electricity demand grew by 3.8% in 2025 and forecasts average annual growth of 3.1% through 2030.
Saudi Arabia is targeting as much as 130 GW of renewable capacity by 2030.
The Jafurah unconventional gas field began production in December 2025 and is central to Aramco's plan to increase sales-gas capacity by about 80% by 2030 from 2021 levels.

Nuclear Cooperation Agreement

The United States and Saudi Arabia signed a 30-year civil nuclear cooperation agreement on July 22. The agreement clears the way for U.S. companies to potentially supply the kingdom with reactors, nuclear materials and technical services. Similar agreements with Turkey and the UAE entered into force in June 2008 and December 2009, respectively. Saudi Arabia's proposed first commercial nuclear plant would be built at Duwaiheen on the Gulf coast. The Saudi regulator has granted a site-preparation licence for two pressurized-water reactors, each with capacity of between 1.0 GWe and 1.6 GWe, but no vendor has been selected.

Liquid Fuel Displacement

Saudi Arabia's Liquid Fuel Displacement Program seeks to displace more than 1 million barrels per day across utilities, industry and agriculture. Natural gas and renewables will provide most of the replacement energy, with nuclear power unlikely to contribute materially to that target by 2030. Saudi consumption of crude oil and fuel oil for power generation rises sharply during the summer, when air-conditioning demand peaks. Combined burn reached 1.42 million b/d in June 2024, according to the EIA, and fell to an average of 678,000 b/d in January and February 2025. February 2025 alone registered an 11-year monthly low of 589,000 b/d.

Gas and Renewables Expansion

The Jafurah unconventional gas field, which began production in December 2025, is a central part of Aramco's plan to increase its sales-gas production capacity by approximately 80% by 2030 from 2021 levels. Saudi Arabia is also targeting as much as 130 GW of renewable capacity by 2030. Gas and renewables are intended to replace liquid fuels in power generation. The IEA estimates that the kingdom's electricity demand grew by 3.8% in 2025 and forecasts average annual growth of 3.1% through 2030.