Caretaker Energy Minister Walid Fayad met with Iraqi Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul Ghani Al-Swad on the sidelines of the 12th Arab Energy Conference in Doha. The latter announced Iraq’s readiness to sign a contract for the supply of crude oil to Lebanon in early 2024.
This step will increase the electricity supply to the maximum production factor (around 1,400 megawatts after completion of general maintenance operations).
Fayad explained to his counterpart the main reforms implemented by his ministry in the electricity sector, in particular the increase in tariffs which has enabled the company to restore its financial equilibrium.
The two parties discussed the creation of a platform for the supply of Lebanese services to Iraq (approved by the Council of Ministers at its last session) in exchange for fuel.
It should be recalled that Lebanon and Iraq signed an agreement on July 23, 2021 under which Iraq supplies fuel to Lebanese power plants, on advantageous terms to the Land of the Cedars. This agreement came into effect in September 2021, with a quantity of fuel set at 100,000 tonnes per month (80,000 tonnes usable by the power plants due to the swap). Since Iraqi fuel cannot be used directly in Lebanese power plants due to its high sulfur content, Beirut purchases another type of compatible fuel from other suppliers, who receive the Iraqi fuel in exchange.
