At a time when Saudi investments are accelerating to develop electricity infrastructure, keep pace with demand growth, and integrate renewable energy sources, Hitachi Energy is strengthening its presence in the Kingdom on two complementary paths: The first is to expand the contribution of its local manufacturing capabilities to global markets, by exporting products from its factory in Dammam to the United States, and the second is to participate in shaping the international dialogue on the future of energy, by joining the Industrial Advisory Council of the International Energy Forum.
The company’s joining of the “Council”, which was announced in Riyadh, October 11, 2026, in conjunction with the seventeenth ministerial meeting of the forum, comes at a stage in which there is an increasing global need to modernize electricity networks and enhance their flexibility and reliability, in a way that supports security of supply, economic growth, and the shift towards more sustainable energy systems.
Mohammed Al-Masry, Executive Vice President and Head of the Middle East and Africa Region at Hitachi Energy, said that the next stage in the Kingdom will require enhancing the capabilities of transmission networks and increasing connectivity between regions, in addition to developing the network’s ability to accommodate larger and more diverse electricity flows, indicating that digitization and automation will play a growing role in improving the efficiency and reliability of networks.
Al-Masry added, in an interview with Asharq Al-Awsat, on the sidelines of the 25th International Energy Conference (WPC25), that Saudi Arabia represents a long-term strategic market for the company, which employs more than a thousand people in the Kingdom, distributed across three locations, including the main headquarters and the network automation factory in Riyadh, and the high-voltage products factory in Dammam.
He pointed out that the company's manufacturing capabilities in the Kingdom are now contributing to serving foreign markets, explaining that the company recently worked to export products from its factory in Dammam to one of its data center clients in America.
Updating networks and keeping up with demand
Al-Masry explained that the challenge in the electricity sector is no longer limited to the availability of energy sources, but rather includes the ability of networks to transmit and manage electricity efficiently and stably, in light of the rapid changes in generation and consumption patterns.
He pointed out that the increasing contribution of renewable energy sources and the acceleration of digitization increase the complexity of operating networks, which are now required to manage more diverse electricity flows and respond to sudden changes in supply and demand, in addition to modernizing the infrastructure that, in many markets, is designed to meet different needs.
He pointed out that the flexibility and reliability of networks have become basic requirements for continuity of supplies, supporting economic growth, and enhancing energy security, especially with the expansion of reliance on electricity.
At the global level, Al-Masry said that investment needs in electricity networks are increasing, explaining that the expansion of generation capabilities does not achieve its full benefit without parallel investments in transmission and distribution networks, electrical connectivity, and digitization.
He noted that bridging the gap between current investments and future needs requires early planning, directing investments to priority infrastructure, and enhancing cooperation between governments, utility companies, investors and technology providers.
He pointed out that network projects require long-term planning and a clear vision of future demand, in addition to financing and regulatory frameworks that help accelerate decision-making and implementation. Involving technology partners in the early stages of projects can reduce risks and improve efficiency throughout the asset life cycle.
Digitization and electrical connectivity
Al-Masry expected that high-voltage direct current technologies, along with transformer and high-voltage technologies, network automation solutions, and digital technologies, would continue to play a pivotal role in the development of electricity systems in the coming years.
He explained that automation, digital solutions, and artificial intelligence can contribute to improving asset management, supporting decision-making, and raising operational efficiency, while electrical interconnection helps transfer large amounts of electricity over long distances and exchange energy between regions and markets.
He added that these technologies contribute to enhancing interconnection between networks and integrating renewable energy sources, thus supporting the reliability and stability of electricity systems.
Al-Masry stressed the importance of long-term partnerships between governments, utility companies, investors, the industrial sector and technology companies, in light of the expanding scope of the transformation required in the electricity infrastructure.
He noted that these partnerships help align policies, investments, and technical solutions with the needs of the system, and also contribute to early planning, reducing risks, and accelerating project implementation. He stated that involving technological partners from the early stages, and developing investment and implementation frameworks that support long-term decisions, are important factors for accelerating the development of networks.
Saudi Arabia and the needs of the next stage
Al-Masry said that economic growth, industrial expansion, and high demand for electricity, in addition to the integration of renewable energy sources and the development of electrical interconnection projects, are major factors in the transformations witnessed by the electricity sector in Saudi Arabia.
He said that the next stage will require strengthening the capabilities of transmission networks, increasing connectivity between regions, developing the flexibility of the network and its ability to accommodate larger and more diverse electricity flows, in addition to expanding the use of digitization and automation to improve network management and raise its efficiency and reliability.
He pointed out that development opportunities in the Kingdom are not limited to expanding the existing infrastructure, but rather include building an electrical system that is more interconnected, flexible, and prepared for future growth, in a way that supports economic development and enhances energy security in the long term, in line with the goals of “Vision 2030.”
He stressed that Hitachi Energy's strategy in the Kingdom focuses on supporting its needs in the areas of electrical connectivity, modernizing networks, digitization, and integrating renewable energy sources, while continuing to invest in local capabilities, partnerships, and competencies.
US Secretary of Energy Chris Wright said that oil flows through the Strait of Hormuz have returned to between 80 and 90 percent of pre-conflict levels, equivalent to about 13 to 14 million barrels per day on average, noting that the increase in oil flows through alternative pipelines has contributed to supporting supplies to global markets.
Wright explained, during his participation via video conference at the World Petroleum Conference, that excess production capacity and large stocks helped keep crude oil supplies at acceptable levels, despite the continuing challenges, pointing out that the crude oil problem has become largely under control, but it has not completely ended.
He added that the biggest challenge is the flows of refined petroleum products emerging from the Arabian Gulf region, which are still only between 25 and 35 percent of pre-conflict levels, which exacerbates the scarcity of supplies in the diesel, jet fuel and gasoline markets.
A shortage of refined products exacerbates market pressures
Wright pointed out that the decline in exports of refined petroleum products from the Gulf coincides with a decline in supplies from other sources, explaining that Russia, which was a major exporter of diesel, has become a net importer of it, albeit in limited quantities.
He added that China has significantly reduced its exports of petroleum products, and announced that it will not export refined petroleum products during October, which increases pressure on global markets.
He expressed his hope that increased production from Chinese refineries, which have surplus refining capacity and operate with encouraging profit margins, would contribute to alleviating the shortage of refined products, in addition to American refineries continuing to operate at record levels in terms of quantities of oil processed and production.
He pointed out that the course of the Russian-Ukrainian war and Chinese policy towards exports of petroleum products will affect supply developments during the coming period.
Sea shipping hampers supply recovery
The US Secretary of Energy explained that sea shipping represents an additional factor complicating the recovery of flows of refined petroleum products from the Gulf, in light of the high transportation costs and long shipping routes.
He pointed out that the Houthi unrest in the Bab al-Mandab Strait prompted oil tankers to take longer routes, while changes in sources of supplies and Iranian attacks on ships contributed to increasing pressure on the capacity available for maritime shipping.
He added that the decline in the flows of Iranian, Venezuelan, and Russian oil through the channels that were using what is known as the “dark fleet” led to the availability of a large number of tankers that were transporting these supplies.
Wright said that there is a need to reintegrate some of these tankers into the regular shipping system, and lift sanctions on them where possible, with the aim of increasing the capacity available to transport petroleum products from the Gulf and supporting the continued operation of the oil and gas system.
High prices for diesel and jet fuel
Wright warned that the rise in shipping costs is more reflected in markets far from sources of supply, noting that global diesel prices have recorded very high levels, while jet fuel prices have risen, in addition to a more moderate increase in gasoline prices.
He stressed that the abundance of spare production capacity and stocks helped contain pressures on the crude oil market, but the continued shortage of refined products and restrictions imposed on sea shipping remain challenges.
Wright concluded by noting that dealing with the repercussions of the conflict demonstrated the energy system's ability to adapt, but he stressed that the crisis is not over, and that the markets still face challenges that require continued work to ensure the flow and stability of supplies.
Nigeria's Minister of State for Petroleum Resources, Heineken Luke Perry, affirmed his country's solidarity with Saudi Arabia following the recent attacks on it, stressing the importance of international cooperation to confront energy security challenges and ensure the availability of supplies at affordable prices.
Perry said - during his participation in the World Petroleum Conference in Riyadh - that the Nigerian President directed his country's delegation to come to the Kingdom to show solidarity with it, and to confirm that Nigeria stands by it, despite the concerns raised by the attacks regarding participation in the conference. He pointed out that the challenges facing the energy sector are not limited to a specific country; Rather, its effects extend to various global markets. He explained that the current energy crisis requires countries to strengthen cooperation and exchange experiences, pointing out that the challenges of providing energy in Saudi Arabia share many aspects with those facing Europe and Nigeria, which requires joint work to find solutions that guarantee the continuity of supplies and the possibility of bearing their costs globally.
Nigeria turns to exporting refined products
Regarding the development of the energy sector in his country, Perry pointed out that, a few years ago, Nigeria relied on importing most of its needs of refined petroleum products, despite being a crude oil producing country. It exported crude and imported almost all of its refined products. He added that this situation has witnessed a noticeable change, explaining that imports declined to about 10 percent, coinciding with the growth of local capabilities in the field of refining.
He pointed to the role played by the “Dangote” refinery in this transformation. It has become able to meet the needs of the local market and provide oil products to foreign markets, including European markets. He pointed out that Nigeria now has a surplus of some petroleum products. Especially aviation fuel, which enhances its ability to contribute to international market supplies. He stressed that developing local refining capabilities represents an important step to enhance energy security and reduce dependence on imports, as well as providing new opportunities to export petroleum products and benefit from local resources.
