US Energy Secretary Chris Wright on Sunday, April 13, said Washington and Riyadh are on the brink of signing an initial agreement to collaborate on building a civil nuclear energy industry in Saudi Arabia. Wright said this after meeting Saudi Energy Minister Prince Abdulaziz bin Salman on Sunday morning.
According to Wright, a more detailed version of the agreement outlining the full scope of energy cooperation between the two nations is expected to be unveiled later in 2025.
“For a US partnership and nuclear participation here, there will certainly be a 123 agreement … there’s plenty of ways to form a deal that will achieve both the Saudi goals and the American goals,” Wright said at a briefing, quoted by Reuters.
Understanding the 123 Agreement
The agreement in question is regulated by Section 123 of the US Atomic Energy Act of 1954. Also known as a “123 agreement,” it is a condition for US firms and the government to engage in foreign countries’ civil nuclear development projects, such as in Saudi Arabia.
This deal outlines nine non-proliferation conditions to guarantee the nuclear technology exchanged is not used for the development of weapons or disseminated to unauthorized groups. To date, however, Wright verified that “the Saudi authorities have not agreed to the conditions of the US act.”
Enrichment Hurdles and Security Concerns
Development has been gradual because Saudi Arabia has been reluctant to adopt measures that would deny it enriching uranium or reprocessing used nuclear fuel. These two steps are crucial in building nuclear weapons capability, prompting international alarm.
Saudi Crown Prince Mohammed bin Salman has already made it public that the kingdom will seek nuclear weapons if its regional arch-nemesis, Iran, manages to obtain them. He has publicly said that Saudi Arabia will not be shy to counter Iran’s nuclear ambitions.
No Reference to Israel Normalisation
Even though there were previous attempts under the Biden administration to connect a nuclear agreement with wider regional diplomacy, including Saudi-Israel normalisation, Wright had not referred to any such overall agreement. The latest discussions seem to centre on solely civil nuclear cooperation.
Enhancing Vision 2030 Objectives
A civilian nuclear energy agreement would go a long way in advancing Saudi Arabia’s Vision 2030, Crown Prince Mohammed bin Salman’s vision to transform the nation’s economy. Nuclear power is viewed as an integral component of the strategy to diversify energy resources, lower carbon emissions, and build sustainable infrastructure.
The possible agreement is a major development in US-Saudi relations, centered on peaceful energy cooperation and putting politically charged items such as Israel normalisation on the backburner.
