Korea getting closer to Saudi's nuclear project

By Yoon Ja-young

Korea is continuing its efforts to win a Saudi Arabian nuclear power plant project, with energy ministers of the two countries meeting in Seoul Friday.

Paik Un-gyu, the minister of trade, industry and energy, met Saudi Arabia's Energy Minister Khalid Al-Falih, discussing bilateral cooperation in energy and overall industries, including “Saudi Vision 2030.” The blueprint of the Middle Eastern kingdom aims at economic structural reform by developing new industries while reducing its heavy reliance on oil exports.

Minister Al-Falih is known as one of the closest aides to Saudi Crown Prince Mohammed bin Salman. On top of leading the Saudi Arabian Oil Company (Saudi Aramco) as its CEO, he is also chairing the King Abdullah City for Atomic & Renewable Energy and Saudi Center for International Strategic Partnership.

The visit follows the invitation by the Korean minister made during his trip to Saudi Arabia back in March. Minister Al-Falih is in Korea from May 3 to 5, visiting Hyundai Motor's Asan plant and S-Oil's Ulsan plant. S-Oil is owned by Aramco Overseas Company. He is also meeting President Moon Jae-in to bolster friendly ties between the two countries through bilateral economic cooperation, on top of attending a reception organized by the Saudi Arabian Embassy where key figures from politics and business gathered.

The two ministers discussed cooperation for Vision 2030. The $700 billion project will transform Saudi Arabia into a new technology and investment hub in the Middle East.

They agreed to set up an auto-dialogue channel to discuss strategies to nurture the automobile industry in Saudi Arabia and prepare a pharmaceutical and bio industry investment forum for businesses interested in advancing into the Middle East. The two countries plan to hold the second “Korea-Saudi Vision 2030 Committee” within the fourth quarter this year to bring about tangible outcomes.

Paik showed Korea's will to tender a bid for Saudi Arabian nuclear power plant project. The Middle East country is planning to build two 1400 MW power plants in the $20 billion project, and is expected to soon announce two or three preliminary favorites. Korea, which successfully won a $20 billion nuclear power plant contract with the United Arab Emirates in 2009, jumped into the competition with countries such as the United States, Russia, China and France.

The minister stressed Korea's strengths, including experience in construction and operation, solid supply chain, economic feasibility and technological safety, on top of the successful construction of the nuclear power plant in Barakah, the UAE, which is in a desert. He also stressed the UAE government's satisfaction with the Korean-built nuclear power plant.

According to the government, the Saudi Arabian minister shared the progress of the country's nuclear power plant project, and noted that the two countries are expanding cooperation to diverse sectors such as eco-friendly cars and ships from traditional sectors such as oil and construction. He also hoped the two countries will obtain tangible outcomes soon working as key partners heading toward the future.