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28

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TOKYO (12 P.M.)

TODAY'S PRINT EDITION


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JAPAN AND SAUDI ARABIA PUSH FORWARD ON DECARBONIZATION TECH TIE-UP

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 * Prime Minister Fumio Kishida and Saudi Arabian Crown Prince Mohammed bin
   Salman hold talks in Jeddah, Saudi Arabia, on Sunday. | KYODO

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   Jul 17, 2023
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JEDDAH, Saudi Arabia – Prime Minister Fumio Kishida and Saudi Arabia's Crown
Prince Mohammed bin Salman agreed on Sunday to cooperate in sharing technology
to aid in the decarbonization and economic diversification of the Middle Eastern
nation, while ensuring Japan's ongoing access to its oil.

During their meeting in Jeddah on the west coast of the Arabian Peninsula, the
two agreed to launch a “strategic dialogue” at the foreign-minister level to
deepen bilateral collaboration.



Through its engagement with Riyadh, Japan is seeking to guarantee its supply of
oil remains stable, while Saudi Arabia is banking on investments in advanced
Japanese technology to build a more diversified economy.

They signed 26 memorandums of cooperation in the energy sector, with Tokyo
providing Riyadh with technologies to expand its solar power generation
capabilities and innovations in the use of hydrogen and ammonia as sources of
clean fuel.

Japan imports nearly all the crude oil it consumes, with oil from Saudi Arabia
accounting for about one-third of the total, making the Middle Eastern country a
crucial energy partner. Concerns around supply have become especially heightened
recently due to the disruption caused by Russia's invasion of Ukraine.

Saudi Arabia is in the midst of efforts to reduce its dependence on oil exports
and is striving to build a stronger private-sector economy under its Vision 2030
economic reform blueprint and is interested in Japan's energy technology
know-how.

Executives from about 40 Japanese companies are accompanying the prime minister
during his four-day trip from Sunday.

"We are shifting away from the existing relationship of an oil importer and an
exporter and will deepen a new global partnership for the decarbonization era,"
Kishida said after the meeting with the crown prince.

The two also reaffirmed their joint efforts to stabilize the global oil market,
after prices surged following Russia's invasion of Ukraine.

Kishida did not raise the alleged murder of Saudi dissident journalist Jamal
Khashoggi at the Saudi consulate in Istanbul in 2018. The U.S. intelligence
community concluded that the crown prince approved an operation that resulted in
the killing, causing a global outcry.

In an earlier meeting with Gulf Cooperation Council Secretary General Jasem
Mohamed al-Budaiwi, Kishida agreed to resume negotiations on a free trade deal
and to have the Japanese foreign minister hold regular meetings with
counterparts from GCC member nations.

Kishida, who served as foreign minister for around five years through 2017, has
been eager to strengthen relations with the six-member GCC composed of Bahrain,
Kuwait, Oman, Qatar, Saudi Arabia and the UAE to secure stable supplies of oil
and natural gas.

After the visit to Saudi Arabia, Kishida is due to travel to the United Arab
Emirates and Qatar.


KEYWORDS

energy, Fumio Kishida, Saudi Arabia, oil, Saudi Arabia-Japan relations, tech 
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