UAE Signs $3 Billion Contracts to Secure Nuclear Supplies

In order to supply its new nuclear reactors, the UAE’s Emirates Nuclear Energy Corporation (ENEC), has awarded a group of six international companies to provide the nuclear fuel requirements to enable 15 years of operation. The contracts are valued at total of $3 billion.

ENEC will build four 1,400 MW nuclear reactors at the Barakah plant in the West of Abu Dhabi. The fuel supplied enable the power plant to generate 450 million MWh for the 15 year period that the contracts cover; starting in 2017.

ENEC will purchase conversion services from ConverDyn of the US, Natural Uranium from Uranium One Inc. of Canada, enrichment services from URENCO of the UK, and natural uranium from Rio Tinto. They will also get uranium concentrates, conversion services, and enrichment services from TENEX of Russia and AREVA of France.

Mohamed Al Hammadi, CEO of ENEX, said that “the completion of the fuel supply strategy is a key achievement to ENEC's programme and a clear example of how the UAE continues to set the gold standard for implementing a peaceful nuclear energy programme.”

“These contracts will provide ENEC with long-term security of supply, high quality fuel and favourable pricing and commercial terms. We are also pleased that this marks the start of long-term commercial relationships with companies that have earned excellent reputations in the industry.”

By. James Burgess of Oilprice.com