Saudi Arabia and Yemen have signed a $150 million agreement to supply petroleum derivatives for electricity generation, reinforcing efforts to improve power services across the country.
The agreement falls under the framework of the Saudi Development and Reconstruction Program for Yemen (SDRPY). Through this initiative, Saudi Arabia will provide fuel supplies to support the operations of power plants in several Yemeni governorates.
Under the deal, authorities will supply diesel and mazut fuel to more than 70 electricity generation plants throughout Yemen. As a result, the agreement aims to strengthen the stability and reliability of power services across the country.
Furthermore, the fuel supplies will help maintain continuous electricity generation for households, businesses, and public institutions. Reliable power remains essential for supporting economic activity and improving living conditions.
In addition to the fuel agreement, SDRPY, Yemen’s Ministry of Electricity and Energy, and the state-owned oil company PetroMasila signed another agreement to support the sustainability of the company’s operations.
The new partnership seeks to enhance PetroMasila’s operational capabilities and improve efficiency. Moreover, it aims to ensure uninterrupted services that support the Yemeni government’s energy objectives.
Saudi Arabia has provided significant support to Yemen’s electricity sector over the years. Therefore, the latest agreement builds on a series of previous initiatives designed to strengthen energy infrastructure and improve public services.
In 2018, SDRPY provided a petroleum derivatives grant valued at $180 million. Subsequently, Saudi Arabia approved another fuel support package worth $422 million in 2021.
The Kingdom continued its assistance in 2022 by providing an additional grant valued at $200 million. More recently, Saudi Arabia delivered another fuel grant worth $81.2 million in 2026.
These initiatives have played an important role in helping Yemen maintain electricity generation despite ongoing economic and infrastructure challenges. Consequently, many power plants have remained operational with external support.
Energy officials believe the new agreement will contribute to greater stability in electricity services. In addition, it could help reduce disruptions that affect critical sectors such as healthcare, education, and water services.
The agreement also highlights the ongoing cooperation between Saudi Arabia and Yemen in the energy sector. Furthermore, both countries continue working together to strengthen essential infrastructure and improve service delivery.
As Yemen seeks to address its energy challenges, stable fuel supplies remain a key requirement for maintaining electricity production. Therefore, the latest agreement represents an important step toward supporting the country’s power generation capacity.
Through continued assistance and strategic partnerships, Saudi Arabia aims to contribute to Yemen’s economic recovery and the development of vital public services, particularly within the energy sector.
