The 42nd JCCP International Symposium

Mishaal Al-Thukair
General Manager – Refined Products and Distribution
Oil & Gas Sector
Ministry of Energy
Kingdom of Saudi Arabia“Enabling a Sustainable Energy Society: Human Resources,
Technology Development, and International Collaboration”

January 25, 2024, Tokyo

Excellencies, Distinguished Guests, Ladies and Gentlemen,
It is a great honor and pleasure to be here today to discuss this important topic with you --- thank you
for the invitation, and it is always delightful to visit your great and hospitable country.
Last year was a very exciting year for our countries, starting with His Royal Highness Prince Mohammedbin Salman, the crown prince and prime minister of Saudi Arabia hosting of His Excellency JapanesePrime Minister Fumio Kishida in Saudi Arabia during July 2023.
During this visit, His Royal Highness the minister of Energy of Saudi Arabia Prince Abdulaziz binSalman, emphasized that Saudi Arabia will continue its co-operation with Japan in crude exports, andemphasized the importance of the joint co-operation between the two countries in the field ofPetrochemicals, clean hydrogen and its applications, in addition to developing the infrastructure for“circular carbon economy” applications.
One of the milestones of this visit was the announcement of the Saudi-Japan Manar (Lighthouse)
Initiative for Clean Energy Cooperation, covering key areas including the use of hydrogen and ammonia,
carbon recycling, critical minerals required for the energy sector, and supply chain resilience.
Later during September of the same year, Saudi Arabia’s Crown His Royal Highness Prince Mohammedbin Salman, met with His Excellency Japanese Prime Minister Fumio Kishida in New Delhi, India, during
the G20 summit.
Also, during September, His Excellency Mr. HAYASHI Yoshimasa, Minister for Foreign Affairs of Japan,
held the First Japan-Saudi Arabia Foreign Ministerial Level Strategic Dialogue with His Highness Prince
Faisal bin Farhan, Minister of Foreign Affairs, in the Kingdom of Saudi Arabia.
In December, the Minister of Energy of Saudi Arabia His Royal Highness Prince Abdulaziz bin Salman andHis Excellency the and Minister of Economy, Trade and Industry of Japan Mr. Ken Saito held the 2nd
Saudi-Japan Energy Dialogue in Riyadh, and reviewed the progress of the Lighthouse Initiative andunderlined the need to support stable global oil markets and secure stable global energy supply bypromoting dialogue between oil producers and consumers.
The Saudi-Japanese Vision 2030 also held its seventh ministerial meeting in Riyadh, and a Saudi Japan
investment forum was held during the same time in December.
As you can see, 2023 was a very important year for KSA and Japan, the highlight of the year for Saudi
Arabia was the announcement of hosting the 2030 EXPO in Riyadh, which will directly follow the 2026
EXPO that will be held in OSAKA Japan, and we wish both cities a very successful hosting of thisimportant event.

Having said all of that, allow me to share with you some of the key figures illustrating Saudi Arabia globalposition.
Currently, Saudi Arabia is one of the largest economies in the world with 1.1 Trillion Dollars in GDP in
2022.

By the end of 2022, the kingdom stands on a reserves base of 267 billion barrels of oil, making it thesecond-largest country in the world in terms of oil reserves.
we have a strong record of supply; as we managed an average daily production of 10.6 million barrels
per day
Our unique reserves base, and world-class infrastructure, have helped us maintain a maximum
sustainable capacity of more than 12 million barrels per day.
despite our large production, we operate with responsibility towards the environment. As a result, wehave one of the lowest upstream carbon footprints in the world.
When it comes to Gas reserves, we are standing on a reserves base of 335 trillion cubic feet of Raw Gas.
and we managed an average natural gas and ethane production of 10.6 billion cubic feet per day
Moving into refining, we have 9 refineries to serve the local & global demand with a total production
capacity of 3.3 million barrels per day. And a global total capacity of 7.1 Million barrels per day.
As of now, we have multiple high integration refineries, and we are planning to upgrade our facilities tohigher integration levels to increase our chemicals output, with a higher focus on crude oil to chemicals.
Moving to petrochemicals, Saudi Arabia is the 5th largest producer globally with a production of 40
million tons per year.
Our aim in expanding the petrochemical sector doesn’t stop at increasing our production of basechemicals, but goes beyond that by converting base and intermediate chemicals into downstream
chemicals

Next, and after the brief of the Oil & Gas sector in Saudi Arabia, I would like to focus on the Enablementof an Energy Sustainable society efforts which is the main theme of today’s event.
•First, I would like to talk about emissions, and with the upcoming concerns of managing the CO2
emissions worldwide, the current solutions are not adequate to meet the scale of the challenge,
thereafter, the proposed approach should take into consideration all of the following:o A significant scale-up in the current investments in (renewables and energy efficiency)
and clean hydrogeno Innovation and collaboration are needed to address the lifecycle emissions associatedwith renewable materials and energyo There are no practical solutions for hard-to-reduce sectors such as industry, aviation,
shipping and otherso Enhanced scaling up of clean hydrocarbon technologies (e.g. CCUS) will support reaching
net zero under the Paris Agreement faster

The approach to design the Saudi Arabia’s green transition journey has considered:-The national circumstances and priorities understanding that different countries and regions
have varying circumstances.

-Balancing the energy trilemma of energy security, climate change, and energy access.

-finally, Responding to urgency and global priorities.

As a result, the Kingdom launched multiple ambitious initiatives that directly reduce emissions such as:-Renewables to produce 50% of Saudi Arabia’s electricity by 2030-

Strengthen Saudi Arabia’s Energy Efficiency Program (SEEP)-Using captured carbon to produce chemicals and synthetic fuels. It should be noted thatcurrently the Kingdom has two projects for Carbon Capture and Utilization (CCU) Hubs in thewest and in the east, where we aim to deploy one of the world’s largest Carbon Capture,Utilization and Storage (CCUS) hubs in Saudi Arabia by 2035 to reach our total targeted capacityof 44 million tons per year-

Joining the Global Methane Pledge to contribute in cutting global methane emissions by 30% by2030-

Being the world’s leading producer and exporter of clean hydrogen by 2030. It should be notedthat the kingdom Benefits from several advantages that make it an ideal hydrogen exporter,
such as:-low cost of production due to the ample solar and wind recourses
Availability of low-cost natural gas
Availability of existing infrastructure to globally export hydrogen
Ability of Raising capital at low rate, thanks to our high credit rating

Saudi Arabia aims to produce up to 11 million tons of blue ammonia per year by 2030, and in this regard,
one of our success stories in this field is the partnership between Saudi Aramco, Sabic, and the Instituteof Energy Economics in Japan (IEEJ), where we have successfully demonstrated the production andshipment of blue ammonia from Saudi Arabia to Japan with support from the Japanese Ministry ofEconomy, Trade and Industry. 40 tons of high-grade blue ammonia has been dispatched to Japan for use
in zero-carbon power generation, which demonstrates an excellent milestone for this collaborative
future as Japan has been the first receiver of blue ammonia from Saudi Arabia.

In the end, I would like to re-affirm that Japan is a strong partner to Saudi Arabia. Together, we want toenhance the determination of both our countries to fully realize our joint ambitions.
Thank you all for giving me the opportunity to address this esteemed audience, and I am looking
forward to the success of both of our great visions.