Saudi Arabia Eyes Nuclear Power to Reduce Oil Consumption
Saudi Arabia's power stations and industries consume over 1 million barrels per day of liquid fuel, which the kingdom aims to replace by 2030 using natural gas and renewable energy. The country has signed a 30-year civil nuclear cooperation agreement with the United States, allowing U.S. companies to supply reactors, materials, and services for potential future nuclear power projects.
The International Energy Agency estimates that Saudi Arabia's electricity demand grew by 3.8% in 2025 and forecasts an average annual growth of 3.1% through 2030. The kingdom is targeting a significant increase in renewable capacity to 130 GW by 2030, with gas and renewables set to replace liquid fuels in power generation.
Nuclear power could further reduce domestic oil consumption after 2030 as electricity demand continues to grow. However, the project's timeline remains uncertain, and no reactor vendor has been selected or construction timetable established.