Shafaq News/ On Tuesday, Lebanon and Iraq announced they had reached two agreements to increase fuel supplies from Baghdad to Beirut.

The agreements address Lebanon's severe economic crisis and its struggle to boost electricity production.

The Lebanese Energy Minister, Walid Fayyad, confirmed that Iraq has agreed to raise the volume of heavy fuel oil supplies to Lebanon by 50% under an existing agreement, resulting in an increased supply of 1.5 million tons this year. Additionally, Iraq has agreed to a trade deal to provide Lebanon with two million tons of crude oil annually.

The Iraqi Prime Minister's office also confirmed these agreements.

The initial heavy fuel oil deal was established in July 2021, with Iraq supplying fuel to the Lebanese government in exchange for services, including healthcare for Iraqi citizens. In return, Lebanon exchanges the heavy fuel oil for gasoil, which can be used in power plants operating below their capacity due to the country's financial crisis, which has hindered its ability to purchase fuel.

According to Fayyad, the trade agreement for two million tons of crude oil will also involve an exchange mechanism. In addition, the deal includes a six-month deferred payment mechanism without any financial interest, and the price will be based on competitive international prices. These agreements are part of Lebanon's efforts to enhance its electricity supplies and address the power shortage in the country while also alleviating the impact of the ongoing economic crisis.