Saudi Arabia is constructing a deep-sea cable to connect India in order to develop a sustainable energy system between the Middle East and South Asia. According to The Economic Times, which cites anonymous sources, Saudi energy minister Prince Abdulaziz bin Salman will visit New Delhi on Friday.
The Saudi minister is in Delhi to prepare for Saudi Prime Minister and Crown Prince Mohammad bin Salman’s forthcoming visit to India.
The Saudi Crown Prince will make his first stop in India as part of his next trip, which will also take him to Indonesia, South Korea, and Japan. During the Saudi energy minister’s visit, the two parties are expected to start discussions on the commercial viability of the deep sea cable project.
The project’s goal is to link the Gulf coast with Gujarat’s western shore. The Abu Dhabi government may join the vast deep sea energy project if India approves, according to the Economic Times. The project will cost between $15 billion and $18 billion, according to industry specialists in India.
According to the paper report, officials from the petroleum and natural gas industries conducted a feasibility study on such a project three years ago, but the proposal has recently gained pace, with India’s Prime Minister Narendra Modi pressing the International Solar Alliance on it.
Leading companies like the Tata Group, Reliance Industries Ltd., JSW, and Adani have already been invited to participate by the Saudi envoy to India. The crown prince’s vacation will begin in India and will continue to Indonesia, South Korea, and Japan.
The Arabian Sea stretches 1,600 kilometers between the Gujarat coast (Mundra Port) and the emirate of Fujairah. The cable might stretch across Oman for 1,200 kilometers, with the deepest point measuring 3.5 kilometers. According to sources, authorities from petroleum and natural gas did a feasibility study three years ago, but the project has only lately begun to go forward as a result of the Indian government’s push for the International Solar Alliance.
The oil-rich Gulf countries, particularly Saudi Arabia, are attempting to diversify their energy requirements in order to fuel their power plants. Electricity is generated throughout the kingdom using natural gas (52%), oil (40%), and steam (8%). Saudi Arabia, however, must increase its 55 GW capacity to 120 GW by 2032 because of an impending energy shortage.
The Australian Federal Government granted the project considerable project prestige this week, which will aid in the licensing process for the $22 billion Australian-Asian Power Link employing high voltage direct current (HVDC) technology.
Saudi’s energy sector
Saudi Arabia’s energy sector comprises the production, consumption, and exports of petroleum and natural gas, as well as the generation of electricity. Saudi Arabia is the greatest producer and exporter of oil in the world. Saudi Arabia’s economy revolves around petroleum; oil accounts for 90% of exports and 75% of government revenue.
The oil industry generates around 45% of Saudi Arabia’s GDP, while the private sector generates 40%. The Saudi GDP per capita is $20,700. Despite diversification, the economy still relies largely on oil, particularly in the petrochemical sector.
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