Lebanon signs deal for fuel supply from Iraq

By Wassim Saif Al-Din

BEIRUT, Lebanon (AA) — Lebanon said Wednesday that Iraq has agreed to secure the country’s needs of oil derivatives.

In a statement, the Lebanese Ministry of Energy and Water said Baghdad will double the amount of fuel allocated for power generation in Lebanon from 80,000 tons per month to 160,000 tons per month.

Iraq also agreed to increase the volume of heavy fuel oil exported annually to Lebanon by 50% to 1.5 million metric ton, it added.

According to the statement, Iraq will also provide Lebanon with two million metric tons of crude oil annually.

The ministry said Lebanon received payment facilities for this deal for six months from the date of receipt "without incurring any financial interests and at a price that takes competitive international prices into account.”

There was no confirmation yet from the Iraqi authorities.

In July 2021, Lebanon inked an agreement with Iraq to import one million tons of fuel in a bid to ease the country's fuel shortages.

The Lebanese have relied on expensive private generators since the end of the country’s civil war (1975-1990), when the energy infrastructure was destroyed. It has been unable until today to solve the crisis radically.

Since 2019, Lebanon has been plagued by a crippling economic crisis that, according to the World Bank, is one of the worst the world has seen in modern times.

*Writing by Ikram Kouachi