Lebanon risks plunge into darkness as government races for fuel deal

Lebanon risks plunge into darkness as government races for fuel deal
Tens of thousands of Lebanese public sector workers are on strike for a sixth week as they struggle to cope with the country's crippling economic crisis. (AP/File)
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Updated 11 August 2022

Lebanon risks plunge into darkness as government races for fuel deal

Lebanon risks plunge into darkness as government races for fuel deal
  • UN spokesman calls on Nasrallah to halt ‘incitement,’ threats

BEIRUT: Lebanon could plunge into total darkness by the end of August if an agreement with Iraq to supply Electricite du Liban with fuel is allowed to expire.

With fuel stocks falling to critically low levels, the Lebanese government is looking for ways to avert a major power crisis.

Fears of an energy shortfall grew on Tuesday amid threats by Hezbollah Secretary-General Hassan Nasrallah.

“Hezbollah is ready for war if the Israeli side decides to start drilling for gas in the Karish field on Sept. 1, in the event that no agreement is reached between Lebanon and Tel Aviv during the remaining few weeks,” he said.

UN spokesman Stephane Dujarric called on Nasrallah to avoid incitement and adding fuel to the fire in the region.

Lebanon’s last shipment of oil from Iraq in July was insufficient, EDL said, adding that it was “barely 28,000 metric tons.”

It said: “We are prioritizing vital facilities in Lebanon, namely the airport, the port, water pumps, sewage systems and basic state headquarters.”

EDL also warned of low production capacity, which will reach a maximum of 250 megawatts within days. “This will negatively affect the stability of the network, which sometimes exposes it to blackouts that may be repeated several times per day, despite the exceptional efforts to stabilize the electrical network as much as possible.”

The Ministry of Energy, under the government of caretaker Prime Minister Najib Mikati, has been actively searching for an alternative to Iraqi oil, focusing on Algeria and Iran as potential sources.

Nasrallah suggested in July accepting an Iranian donation of fuel to address the crisis, provided that it reaches Lebanese and not Syrian ports, adding: “This, however, requires an official Lebanese decision.”

Caretaker Energy Minister Walid Fayyad said: “The Iraqi side is positive regarding the fuel file, and we are counting on extending the agreement between Lebanon and Iraq. The Iraqis did not refuse to extend the agreement, but rather wished to reexamine it before reaching a solution in the next few days.”

Fayyad said that an Iraqi delegation will visit Lebanon to discuss several issues. “We are seeking a great understanding with the Iraqi government,” he said.

Iraq was reportedly hesitant to extend the contract over concerns that Lebanon could fail to pay for the imported fuel in the future.

Speaking on the potential Iranian donation, and if sanctions would prevent Beirut accepting it, Fayyad said that Iranian Ambassador to Lebanon Mojtaba Amani stressed Tehran’s readiness to offer free fuel to Lebanon.

“The Iranian donation would help Lebanon to cross this difficult stage, and the ministry has sent the Iranian side the specifications of the required fuel. The Iranian side requested that a team be formed to discuss this donation, and we are waiting for Mikati’s word to proceed,” Fayyad said.

Mikati’s media office said: “Amani has voiced his country’s readiness to provide the donation of fuel. Mikati thanked Iran for the offer and requested follow-up on this issue with the Ministry of Energy to ensure the technical specifications of the fuel. No official steps have been taken in this regard.”

Some analysts have warned that Iranian fuel is incompatible with Lebanon’s power plants, and that the donated fuel would need to be swapped with a third country for domestic use.  

According to an informed source, the Ministry of Energy is seeking to meet with Algerian energy companies to reach an agreement to supply fuel on concessional terms, but progress has stalled.

The process of importing Egyptian gas and Jordanian electricity is still stumbling as a result of the World Bank’s delay in approving a loan to finance the project, owing to Lebanon’s failure in implementing conditions of the deal.