Saudi Energy (SE: formerly SEC) released its Q1 results this week, confirming continued strong electricity demand growth in the kingdom. It supplied a Q1 record of 63.5TWh last quarter, up 3.3% year-on-year, which it attributed to strong growth in commercial, government and residential segments, as well as the connection of more customers to the grid.
The power sector faces new strains this year as the closure of the Strait of Hormuz is restricting the availability of gas due to its impact on associated gas production. As a result, the government is prioritizing supplies to power plants over industry (MEES, 1 May). Any strains on the system will grow more apparent in Q2 and Q3 as demand rises seasonally alongside temperatures. (CONTINUED - 231 WORDS)