Construction of Saudi Arabia's NEOM Hydrogen Project 80% complete
Saudi Arabia is pressing forward
with the NEOM Green Hydrogen Project, even as
global oil market assumptions shift from those in place when the megacity
vision was first conceived. The project—one of the pillars of the kingdom’s
broader NEOM development—has reached a critical phase, with developer Air
Products reporting that construction is approximately 80% complete across
multiple sites.
Once operational, the facility is
expected to integrate large-scale green hydrogen production with dedicated
solar and wind power generation and a purpose-built transmission network.
Within the next two years, NEOM is poised to become the world’s largest
renewable-powered ammonia production complex, reinforcing Saudi Arabia’s
ambitions to lead in next-generation energy exports.
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This progress comes against the
backdrop of a softer and more volatile oil environment than originally
anticipated. The changing outlook has prompted renewed scrutiny of long-term
reliance on traditional crude benchmarks such as Brent and US crude, while
highlighting the growing importance of transition fuels and cleaner-energy
derivatives, including natural gas.
Market movements over the past month
reflect this evolving landscape. Brent crude prices have risen about 14.65%,
while US crude has gained roughly 14.47%, driven by shifting expectations
around OPEC+ policy, geopolitical risks, and resilient demand. Natural gas has
outperformed both, surging approximately 43.60%, underscoring its role as a
bridge fuel that supports intermittent renewable energy while meeting baseload
demand.
In the near term, technical
indicators suggest constructive momentum across energy markets. One-day signals
point to a buy bias for Brent, US crude, and natural gas, indicating continued
investor confidence as markets digest NEOM’s advancing hydrogen buildout and
Saudi Arabia’s broader energy strategy.
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Arabia poised to become a leading hydrogen producer and exporter: Ghamdi
Together, the steady progress at
NEOM and the recalibration of oil market assumptions illustrate Riyadh’s effort
to balance hydrocarbons with an accelerated push into cleaner, future-facing
energy systems.
Source: https://www.tipranks.com/
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