Monday, Jul 12, 2010
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RIYADH (Zawya Dow Jones)--Shaw Group Inc. (SHAW), Toshiba Corp. (6502.TO) and Exelon Nuclear Partners, a unit of Exelon Corp. (EXC), said Monday they inked a teaming agreement to pursue nuclear power contracts in Saudi Arabia, the world's top oil exporter.
The three firms are seeking opportunities to provide services to design, engineer, construct and operate new nuclear electric generating plants in the Arab world's largest economy, the companies said Monday in a statement posted through Business Newswire.
Toshiba and Shaw would provide design, engineering, procurement and construction while Exelon would provide operations and related services for the projects.
Last week, the Saudi cabinet agreed to sign a nuclear cooperation accord with France. The move came after the world's oil producing powerhouse took a step toward building nuclear power plants in April, establishing a new city devoted to research and application of nuclear technology, King Abdullah City for Atomic and Renewable Energy, or KACARE.
For Saudi Arabia and other oil-rich states in the Persian Gulf, booming populations and fast-growing economies are constraining the governments' ability to provide electricity and water. Nuclear energy is increasingly becoming the favored alternative, one experts say could save more valuable crude for export.
Last year the United Arab Emirates awarded a South Korean-led consortium a $20.4 billion contract to build four nuclear reactors in the sheikhdom.
With electricity generation using around 75% of Saudi Arabia's domestic oil, the need for another source of energy has become acute. And as the kingdom rolls out a plan to spend $400 billion by 2013 to build the infrastructure needed to diversify its economy away from hydrocarbons, it will need all the money it can get from oil exports.
-By Summer Said, Dow Jones Newswires; +966-546-842-373; summer.said@dowjones.com
Copyright (c) 2010 Dow Jones & Co.
(END) Dow Jones Newswires
12-07-10 1115GMT
