The Ministry of Energy & Water announced on May 16, 2023 that it has reached an agreement with Iraqi Ministry of Oil to double the  quantities of oil derivatives that Iraq has been supplying to Lebanon for the benefit of the state-owned Electricité du Liban (EdL). It indicated that the new quantity of fuel oil will increase the monthly supply of fuel to the country from 80,000 tons to 160,000 tons per  month, or 1.92 million tons of fuel oil annually, which will lead to the provision of eight to 10 hours of electricity per day, up from four  to five hours per day currently.  Further, the ministry asked the Ministry of Oil of Iraq to sign a new contract between Lebanon and Iraq pledging to supply two milliontons of crude oil to Lebanon per year. It said that the new agreement will be implemented through a fair and competitive mechanism,  including a six-month deferred payment from the date of the receipt of the cargo and at a preferential rate.In July 2021, the Lebanese authorities reached a deal for one year with their Iraqi counterparts that allows the Lebanese government to  buy one million tons of heavy fuel oil from Iraq and to resell the oil through monthly spot tenders on behalf of EdL in order to meet  power production needs in the country. The ministry said that the Iraqi heavy fuel oil is unsuitable for Lebanon's power plants, so the  Lebanese government has been exchanging the imports with refined fuel oil through tenders to swap the Iraqi heavy fuel oil with 'Grade  B' fuel oil. As a result, the Emirates National Oil Company Limited (ENOC), a firm owned by the Emirate of Dubai, won on August 27,  2021 the tender to swap 84,000 tons of Iraqi "high sulphur black" heavy fuel oil for 30,000 tons of 'Grade B' fuel oil and 33,000 tons ofgas oil. The quantities of heavy fuel oil that ENOC has been swapping each month range from 75,000 tons to 85,000 tons.  The Iraqi government agreed on August 11, 2022 to extend the fuel oil agreement with Lebanese authorities for one year under the same  conditions of the current arrangement. The deal stipulates that Lebanon will buy one million tons of heavy fuel oil for the benefit of the  state-owned Electricité du Liban in exchange for medical and consulting services, and that Iraq will export two shipments per month to  Lebanon. The volume is equivalent to one third of Lebanon's fuel oil needs for electricity production.  In parallel, the Ministry of Energy & Water noted that it has asked the Iraqi Ministry of Oil to deliver the remaining quantities of fuel  oil under the old agreement in four shipments between July and the end of October 2023. (ICE BEIRUT)

Fonte notizia: Byblos Bank, Lebanon This Week, 22-27 May 2023