Energy Transition, Natural Gas, Electric Power, Crude Oil, Hydrogen, Nuclear

April 16, 2025

US to open negotiations with Saudi Arabia on nuclear agreement, other energy issues

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HIGHLIGHTS

123 Agreement needed to export nuclear technology, fuel

Saudi access to enrichment technology still controversial

The US Department of Energy has outlined a framework for a broad energy agreement with Saudi Arabia that includes working toward a US-Saudi nuclear power agreement.

Energy Secretary Chris Wright on April 13 discussed nuclear cooperation with the kingdom as part of a broad memorandum of understanding on energy that the two countries are developing. Wright visited Saudi Arabia as part of a Mideast regional tour he began April 9, with stops also in Qatar and the UAE.

In an April 15 press release, the DOE said the nonbinding MOU the US is drafting with Saudi Arabia would outline collaboration in both traditional and emerging energy sectors, while "reinforcing shared strategic priorities without financial or legal commitments."

A DOE spokesperson said April 15 that the text of the MOU was not yet available. It will likely take weeks to draft a final document before it can be signed at a later date, the spokesperson said.

Wright said at an April 13 press briefing that the energy collaboration outlined by the MOU is broad, with civilian nuclear power as one of many areas of cooperation the two countries will share. Saudi Arabia for about two decades has explored the development of a series of commercial nuclear reactors for power generation. The agreement will also include working together on mining and energy production.

Wright later told the Saudi television channel Al-Arabiya that reaching a formal nuclear cooperation agreement with Saudi Arabia, known as a 123 agreement, involves a rigorous process to ensure against the proliferation of technology that could be used in a nuclear weapon. Such an agreement, which is required for trade in nuclear reactor technology, could take years to work out and would need to be approved by Congress.

"We'll need a 123 Agreement, and a broader specific framework for how we're going to cooperate together," Wright told the news outlet. He said he was optimistic about the prospects of seeing such an agreement secured in a matter of months.

Renewing talks with Iran

According to the State Department, which would lead negotiations on the agreement, US law generally requires that such an agreement first be in place before licensing significant exports of nuclear reactor fuel to the partner country in question. This would also pertain to nuclear reactors and major components.

Allowing Saudi Arabia to produce its own enriched uranium has been controversial given the tensions in the region with neighboring Iran. There have been calls by US lawmakers for any 123 Agreement with Saudi Arabia to include a limitation on the enrichment of uranium or the reprocessing of spent nuclear fuel. Such provisions are part of the US agreement with the UAE.

The energy discussions come as the Trump administration has looked to renewing talks with Iran on reinstating a nuclear agreement with the US, under which Iran would give up its nuclear weapons ambitions. This would in turn lead to a more normalized relationship with the US and the West.

Wright discussed nuclear cooperation with Saudi Arabia one day after US special envoy Steve Witkoff met in Oman with a senior Iranian official to discuss renegotiating the Iranian agreement. A second meeting is tentatively scheduled for April 19.

During his first term, Trump rescinded a previous nuclear agreement with Iran, indicating he believed the Iranian regime could not be trusted, and that the agreement struck by his predecessor, Barack Obama, had been weakened by concessions. Trump on April 14 reiterated those concerns, saying Iran must rid itself of the "concept" of having a nuclear weapon to reach a deal. "They cannot have a nuclear weapon," Trump said.

Nuclear power and oil

In addition to nuclear energy, official Saudi government news sources specified more areas of cooperation that the US and the kingdom would likely take under the forthcoming MOU.

"The two sides discussed strengthening bilateral cooperation across multiple energy fields, including oil and gas, petrochemicals, carbon management, hydrogen technologies, peaceful uses for nuclear energy, electricity, renewables, and innovation, as well as other areas of mutual interest," the Saudi Press Agency stated in an April 13 news brief.

Wright later said he also talked to his Saudi counterpart about climate change, which included discussions about the "obstacles" that fossil fuel-producing nations have faced from climate proponents.

"You know, we've had a growing global movement, including in my country, the United States, that stood in opposition to energy development — somehow thought the road to a better world was less energy, less empowerment of individuals, and therefore less economic prosperity and less freedom," Wright said.