Lebanon seeks to extend Fuel Agreement with Iraq, increase supply amid energy crisis

Shafaq News/ On Monday, Lebanese Energy Minister Walid Fayad announced that Lebanon is working with Iraq to extend its fuel oil supply agreement and increase the quantity provided.

"Lebanon enjoys support from Iraq in the energy sector, with coordination ongoing with the Iraqi government and officials responsible for the Lebanese file," Fayad told reporters.

Fayad noted that the Lebanese government is actively negotiating an extension of the fuel oil supply agreement with Iraq. "We are aiming to extend the agreement for at least another year and increase the supply to two million tons," he said, expressing optimism over Iraq’s support.

The Iraqi aid also includes efforts to assist Lebanon's displaced population in coordination with the of Ministry of Foreign Affairs and Emigrants, Fayad added.

In July 2021, Lebanon signed a deal with Iraq to import one million tons of fuel oil to alleviate its ongoing electricity crisis. The first shipment, carrying 31,000 tons, arrived in Lebanon on September 16, 2021.

The Iraq-Lebanon energy deal provides Lebanon with heavy fuel oil in exchange for services and goods supplied to Iraq.