SerpApi.Org
- The U.S.-Saudi agreement lays the foundation for a decades-long, multibillion-dollar partnership, the Department of Energy said.
- U.S. cooperation with foreign countries on civilian nuclear power requires review by Congress under the Atomic Energy Act.
- Democratic lawmakers are concerned about the impact the deal will have in the Middle East, as Washington bombs Iran to force it to renounce its nuclear ambitions.
The U.S. signed an agreement with Saudi Arabia on Wednesday to develop a civilian nuclear program in the kingdom.
The agreement will lay the legal foundation for a decades-long, multibillion-dollar partnership, the Department of Energy said. It will provide U.S. companies with access to Saudi Arabia's nuclear energy program, boosting exports of American technology in the sector, the department said.
Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman also signed a bilateral agreement on nuclear safeguards.
Wright said the agreement will "uphold the highest standards of nuclear safety and nonproliferation, while relying on the world's best nuclear technology and scientists" in the U.S.
The deal will be submitted to Congress for review, the department said. U.S. cooperation with foreign countries on civilian nuclear power requires such review under the Atomic Energy Act.
Democratic lawmakers have expressed concerns about the impact of the deal in the Middle East. The U.S. and Saudi Arabia signed the agreement as Washington bombs Iran in an effort to force Tehran to renounce its nuclear ambitions.
"This agreement will set off a nuclear race in the region, further disincentivizing Iran from limiting its own program," Senator Chris Murphy of Connecticut said in a social media post.
U.S. industry beneficiaries
Westinghouse CEO Dan Sumner described the deal as a "landmark step." It will strengthen energy security and expand opportunities for U.S. industry, Sumner told CNBC in a statement.
Westinghouse is the developer of a large reactor, called the AP1000, which is viewed as a key technology in expanding nuclear energy. It is owned by Canadian uranium miner Cameco and Brookfield, a major investor in energy infrastructure.
The agreement would allow Westinghouse, Bechtel, BWXT, Centrus and other companies to sell sensitive nuclear equipment to Saudi Arabia, said Jonathan Hinze, president of UxC, a firm that provides information on the nuclear fuel market.
"Without this kind of a nuclear trade agreement, U.S. nuclear companies would remain shut out of the market," Hinze said. "The Saudis would likely go with nuclear technology and supplies from other countries, like France, Russia, or China."
Saudi currently produces virtually all of its domestic energy from fossil fuels. Nearly 60% of its electricity comes from natural gas and around 40% from oil, according to the International Energy Agency.
It is the largest oil producer in OPEC.
