Saudi Arabia has signed a new $150 million agreement with Yemen to supply fuel for electricity generation, aiming to improve power reliability nationwide and support critical infrastructure during the summer months.

The agreement was signed in Riyadh under the patronage of Yemeni Prime Minister Shaya Mohsin Zindani. Yemen’s Minister of Electricity and Energy, Adnan Al-Kaf, and Saudi Ambassador to Yemen and General Supervisor of the Saudi Development and Reconstruction Program for Yemen (SDRPY), Mohammed bin Saeed Al-Jaber, formalized the deal.

Under the arrangement, Saudi Arabia will provide diesel and mazut to more than 70 power plants operating across multiple Yemeni governorates. The fuel supplies are expected to help stabilize electricity generation, maintain service continuity, and support sectors that depend on reliable energy access.

The initiative is part of Saudi Arabia’s broader assistance efforts in Yemen and comes as rising temperatures increase electricity demand. Officials expect the program to support economic activity, facilitate business operations, and contribute to job creation by improving access to power.

A separate agreement was also signed involving PetroMasila, Yemen’s state-owned oil company, the Ministry of Electricity and Energy, and SDRPY. The partnership is designed to strengthen PetroMasila’s operational capacity, enhance efficiency, and help ensure uninterrupted service delivery.

According to SDRPY, the fuel assistance program will operate under a governance and oversight framework led by a committee reporting to the Yemeni prime minister. The committee will monitor distribution and ensure supplies are directed to power generation facilities based on operational requirements.

Saudi Arabia has provided several fuel-support grants to Yemen in recent years, including packages worth $180 million in 2018, $422 million in 2021, $200 million in 2022, and $81.2 million earlier this year. The latest commitment is intended to address immediate energy needs while supporting longer-term improvements in electricity services and living conditions nationwide.