- 16:00
Lebanon is once again on the brink of total darkness. The country faces a new energy crisis, driven by suspicions surrounding the quality of a fuel shipment expected in Beirut. The crisis comes at a time when former Energy Minister Walid Fayad had significantly increased electricity distribution hours before passing the responsibility to his successor, Joe Saddi.
The country is now facing yet another major energy crisis. According to sources at Electricité du Liban (EDL), the available fuel will last only about eight more days, threatening a complete blackout by February 25.
This fuel shortage comes amid significant delays in shipments, sparked by contested tests on the fuel. “Shady dealings” surrounding fuel shipments to Lebanon have become all too common.
Walid Fayad, the former energy minister, is at the center of this controversy, accused of increasing electricity supply to more than 10 hours per day before stepping down — without any solid long-term strategy. This is not the first time Fayad has come under fire, as he has been frequently criticized for managing Lebanon’s energy policy with a political agenda, lacking any real vision for the future.
In his defense, the former minister described a “malicious media campaign” targeting him, which resulted in “the blocking of an ordered fuel shipment.” In a statement, he sought to clarify the facts and unveil what he referred to as “an attempt to sabotage the management of Lebanon’s energy sector.”
“I wish to transparently clarify the facts concerning the fuel test results. On February 8 and 9, we received positive results from Bureau Veritas in Dubai, confirming that the fuel met all required specifications. These tests were conducted on a sample taken at the loading port, followed by another test on the ship after loading, in full compliance with the tender specifications,” he asserted.
He added, “Due to a smear campaign led by certain media outlets spreading false information, and the interference of corrupt individuals attempting to undermine the energy sector, the shipment was unjustly blocked on the false grounds that it did not meet the specifications. This compelled us to carry out a new fuel test on the ship upon its arrival.”
He explained that this operation caused a 10-day delay in delivering the 35,000-ton fuel shipment to the power plants, with the test results only being received this Monday, confirming that the fuel fully complied with the required specifications. He added that the delay in unloading the fuel led to a direct loss of $200,000 and a further loss of 48 million kilowatt-hours of electricity, amounting to an additional $12 million in financial damage.
Meanwhile, the new Minister of Energy, Joe Saddi, finds himself in a delicate position. “I arrived in the middle of a saga,” he told This is Beirut. It was his decision to block the unloading of the fuel due to discrepancies over the tests conducted before its arrival to Lebanon. In contrast to the previous administration, which for years concentrated all power over the energy sector within the ministry, Saddi chose to strictly adhere to the current legislation. Samples were taken upon the ship's arrival, and additional analysis was requested from a certified laboratory. While unpopular, his decision represents a critical step towards restoring transparency in the sector. "We received the results today confirming that the fuel meets all required specifications," he said.
Additionally, questions have been raised about the role of EDL in fuel procurement. According to a legal study conducted by the Ministry of Energy, the General Directorate of Petroleum, which has handled fuel purchases in recent years, is acting in violation of public procurement laws. The study argues that EDL, as a public institution with its own budget, should be responsible for procuring the fuel needed for power plants. The General Directorate of Petroleum, which took over this role under former Minister Fayad, lacks the necessary legitimacy to sign fuel purchase contracts. According to the study, this situation contravenes public procurement law, which stipulates that any public institution with an autonomous budget must manage its own procurement. These findings were confirmed by Jean Ellieh, Director of Tenders, who told This is Beirut that EDL, with its financial and administrative autonomy, is fully capable of managing its own purchases, including fuel. He pointed out that this issue had been raised multiple times with the relevant authorities, but the ministry argued that EDL did not have the necessary funds to pay for the fuel.
This shift could mark a significant departure from past practices, which have been characterized by opacity. If Minister Saddi successfully restores EDL’s role, it could represent a pivotal moment in the management of fuel procurement in Lebanon.
It is essential to note that the energy sector has been managed for over a decade by ministers aligned with the Free Patriotic Movement (FPM), who failed to resolve Lebanon’s chronic electricity issues or offer a viable vision for the future. Over the years, EDL has accumulated a massive and persistent deficit, relying on substantial subsidies while hindering any modernization of infrastructure. This deficit now accounts for over 40% of Lebanon’s national debt, underscoring the depth of the financial crisis caused by years of mismanagement. In summary, the poor management of Lebanon’s electricity sector has not only triggered a huge energy crisis but has also exacerbated the state's financial troubles, severely impacting the lives of citizens.
The new minister, affiliated with the Lebanese Forces (LF), is committed to laying the foundation for a shift in management, one that has long been overdue.
Additionally, it's worth recalling that Lebanon and Iraq signed an agreement on July 23, 2021, under which Iraq agreed to provide fuel to Lebanon’s power plants on favorable terms. The agreement went into effect in September 2021, with a monthly fuel supply of 100,000 tons (80,000 tons of which are usable by power plants due to the swap arrangement). However, due to the high sulfur content of Iraqi fuel, it cannot be directly used in Lebanon’s power plants. As a result, Beirut purchases compatible fuel from other suppliers, who in turn receive the Iraqi fuel in exchange.
This agreement, now in its third year, has enabled the Deir Ammar and Zahrani power plants to operate at nearly 80% capacity, allowing EDL to generate over 800 megawatts of electricity.
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