International Energy Forum: Security of supply requires ensuring that energy reaches consumers

The President of the World Petroleum Council, Pedro Miras, said that supply security has returned to the top priority of the global energy sector with the escalation of geopolitical turmoil, stressing that the global system has become more resilient to supply shocks compared to what it was a few years ago, despite the impact of the turmoil on prices.

Miras's statements to Asharq Al-Awsat come on the sidelines of the seventeenth ministerial meeting of the International Energy Forum, held in Riyadh on the sidelines of Energy Week in Riyadh, which runs from October 11 to 15, and is at the forefront of the twenty-fifth Energy Conference, in addition to international ministerial meetings discussing the security of supplies and the future of the energy system.

Today, Riyadh is hosting the seventeenth ministerial meeting of the International Energy Forum, with the participation of ministers and officials in the energy sector, under the slogan “Energy Security and Common Goals in a New Era.” The meeting focuses on enhancing market stability, coordinating dialogue between producing and consuming countries, supporting investments, and improving the transparency of energy data, at a time when geopolitical risks and challenges facing supply chains are increasing.

Miras explained that the developments that the world has witnessed over the past few years have returned supply security to the top priority, stressing the importance of continuing to develop the sector while maintaining a balance between the three pillars, which he described as equal in importance.

Speaking about supply disruptions, Miras explained that the sector faced challenges in different regions of the world, and not in the region alone, pointing out that the energy sector has experience in dealing with such conditions.

He said that the current turmoil might have had a greater impact on the markets in the past, but the global system has become more resilient today compared to what it was a few years ago, despite the rise in prices.

He added that dealing with these challenges remains possible, citing previous experiences whose effects were more severe, and calling for maintaining confidence in the sector’s ability to overcome turmoil.

Saudi Aramco is expanding its investments in industries and services related to its core business through the “Aramco Namaat” program, which has attracted investments of approximately 216 billion riyals ($58 billion), and has contributed to the establishment of 58 new companies since its launch in 2021, according to information obtained by Asharq Al-Awsat. The program reflects the company's approach to building local and global industrial partnerships, targeting the localization of manufacturing and advanced technologies, and strengthening supply chains, while its contribution to the gross domestic product reached about 103 billion riyals ($27.4 billion).

“Namaat Aramco” is a program for industrial investments and strategic partnerships, launched by the Saudi company with the aim of attracting local and international companies to invest in the Kingdom, develop local industries, create job opportunities for Saudis, and support the diversification of the economy in line with “Vision 2030.”

Over the past five years, the “Namaat Aramco” program has contributed to consolidating the company’s role in excellence, innovation and strategic planning, and moving from one success to another, benefiting from the unique advantages that the company offers in the technical, commercial and operational aspects.

These five years marked a milestone in transforming innovative and promising ideas in the field of business into tangible investment opportunities on the ground, thus transforming what was a dream yesterday into successful industrial projects today for a prosperous and sustainable future.

Numbers talk

According to information obtained by Asharq Al-Awsat, “Namaat Aramco” succeeded in embodying the meeting point between ambition and field implementation. The program contributed to the launch of 58 new operating companies and attracted investments amounting to approximately 216 billion riyals ($58 billion).

The matter did not stop there, as its contribution to the gross domestic product amounted to about 103 billion riyals ($27.4 billion), which reflects the program’s pivotal role in strengthening the local economy, localizing key industrial capabilities, and creating job opportunities for the sons and daughters of the nation.

Integrated system

“Namaat Aramco” is an effective tool for “Saudi Aramco” in building industrial investment partnerships. The strategic focus of the program is on creating value through three main axes: operational flexibility of Saudi Aramco, technical flexibility, and new diversified industries, while effectively contributing to achieving the goals of the ambitious national vision.

The program aims to empower national companies and create value through the company’s system, in 4 main areas: manufacturing, industrial services, digitization, and sustainability.

The impact of the program was evident in enabling partnership between the public and private sectors, and close cooperation with global and local partners, and this helped in creating large-scale investment opportunities, establishing pioneering companies, and attracting foreign direct investments, which enhanced the flexibility and sustainability of the supply chain.

Many of these investments are supported by the Kingdom's incentive programs that enable companies to raise the rate of their local investments. In turn, these initiatives provided new opportunities for industrial investment partners by enabling them to participate in benefiting from the company’s long-term growth opportunities.

Industrial services

Since its launch, the “Namaat Aramco” program has succeeded in achieving outstanding achievements in the four fields in which it works, and has contributed to shaping the future of industrial localization and economic diversification in the Kingdom. In the manufacturing sector, the program supported the local manufacturing of high-voltage marine power cables, the manufacturing of thick-walled vessels, and stainless steel pipes, which allowed the localization of strategic and vital manufacturing capabilities.

The program also works to establish an advanced global center in the Kingdom, specializing in metal reclamation using modern technologies and manufacturing advanced refining catalysts.

This strategic initiative places the Kingdom in a leading regional and central position in the field of sustainable resource recovery, high-value industrial production, and clean energy solutions, which drives economic growth and enhances the Kingdom’s commitment to a more sustainable and environmentally responsible economy.

In the industrial services sector, the “Namaat Aramco” program supported the localization of the metal casting and forming facility, which helped support the national manufacturing of critical products and enhance the flexibility of industrial supply chains.

The program contributed to the development of national engineering, procurement and construction companies, and increased their capabilities to implement reliable and competitive projects in markets inside and outside the Kingdom.

Digitization and sustainability

The “Namaat Aramco” program continued its efforts in national development by implementing major initiatives in the field of digitization. The most prominent of these initiatives are: the localization of advanced digital technologies, such as establishing a national information technology services company; It aims to provide integrated solutions in software development, consulting and technical support, to meet the technical requirements of various sectors, and the Unified Communications Company, as a “Zoom” service, and more than 7 companies in the digital center in King Salman Energy City (SPARK), such as “Hanwei”, “Emerson” and others.

The program had clear contributions to the field of sustainability, such as the project to localize specialized glass production. Supporting Guardian Glass Company through the Gulf Guard joint venture, to expand the scope of specialized glass manufacturing in the Kingdom.

This project focuses on high-performance architectural glass, supporting the growing regional demand for energy-efficient buildings. The cooperation included adding new production lines for float glass and glass processing lines in Jubail Industrial City, which strengthened the local supply chain with advanced products and achieved valuable gains in the field of technical localization.

Features of the future

After all these successes achieved, the “Namaat Aramco” program is moving towards the next stage, and its priorities are developing strategic industrial opportunities that strengthen the “Saudi Aramco” system, in parallel with accelerating the industrial transformation in the Kingdom, striving towards more innovation, supporting the local industry, diversifying the economy, encouraging ambition and promising ideas, promoting the building of flexible supply chains, and localizing vital and advanced technologies.

It continues to attract more global partners to contribute to the establishment of new industrial capabilities, in addition to expanding the scope of establishing advanced digital and manufacturing capabilities, and accelerating the adoption of industrial and digital solutions in emerging sectors, so that the program is part of a larger success story, telling about the achievements in the energy, industry and innovation sectors in the Kingdom and the region.

The European Union tried to remind US President Donald Trump of his harsh criticism of Europe when it was importing gas and oil from Russia at the beginning of the Ukraine war, but it reduced its dependence on Russian energy to low levels recently.

The European Union directed great criticism at the United States of America. Because of the agreement it implemented with Russia regarding the import of diesel, he saw that the agreement represents a strong blow to European countries.

Czech Prime Minister Andrej Babis said that the agreement concluded by US President Donald Trump to import diesel from Russia is “a strong blow to Europe.”

Babis told reporters that he considers the agreement to be a shock, given that Trump has long criticized Europe for purchasing this commodity from Russia, according to Prague Radio on Sunday.

The Czech Prime Minister added that if Europe does not realize that it needs to take action in response to that step, the matter will end badly, and that he is eager to see the nature of the positions that other European leaders will take.

It is expected that a European Union summit will be held next Thursday and Friday.

Trump had said that the United States would import diesel fuel from Russia; Which reduces the American pressure on Moscow that has been ongoing for years. To rein in prices ahead of the midterm elections. Trump added: On social media on Friday, he concluded the agreement with Russian President Vladimir Putin in a phone call.

The European Union warned that easing sanctions would give Moscow additional revenues to finance its war on Ukraine. European Union foreign policy chief Kaya Kallas said in a statement on Saturday evening: “Russian strikes resulted in the deaths of more than 80 Ukrainian civilians within two days. Moreover, Russia has intensified its hybrid attacks against Europe, specifically against EU member states and NATO allies.

She warned that suspending sanctions imposed on Russian diesel shipments would give Moscow “more revenue to wage war.” She added: “This is not the time to ease the pressure on Russia, and Europe will not do that.”

She indicated that next Monday, European Union foreign ministers intend to impose sanctions on a larger number of individuals and organizations supporting the Russian war effort than in any previous round since the outbreak of the war.

Moscow responded with a scathing personal attack on Callas. Russian Foreign Ministry spokeswoman Maria Zakharova told the official TASS news agency: “Plutarch said: ‘A fish rots from the head.’” She added: “For now, there is an extension of this wisdom: the ‘European Union from Callas’.”

Trump announced an agreement to supply hundreds of thousands of tons of diesel to Russia following a phone call with Putin on Friday.