Fear of food shortages after Beirut explosion hits grain reserves

The blast at Beirut port left Lebanon with less than a month’s reserves of grain. (AFP)
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Updated 06 August 2020

Fear of food shortages after Beirut explosion hits grain reserves

  • Beirut port silos had capacity for 120,000 tons

BEIRUT: Lebanon’s main grain silo at Beirut port was destroyed in a blast, leaving the nation with less than a month’s reserves of grain but enough flour to avoid a crisis, the economy minister said on Wednesday.

Raoul Nehme told Reuters a day after Tuesday’s devastating explosion that Lebanon needed reserves for at least three months to ensure food security and was looking at other storage areas.

The explosion was the most powerful ever to rip through Beirut, a city torn apart by civil war three decades ago. The economy was already in meltdown before the blast, slowing grain imports as the nation struggled to find hard currency for purchases.

“There is no bread or flour crisis,” the minister said. “We have enough inventory and boats on their way to cover the needs of Lebanon on the long term.”

He said grain reserves in Lebanon’s remaining silos stood at “a bit less than a month,” but said the destroyed silos had only held 15,000 tons of the grain at the time, much less than capacity which one official put at 120,000 tons.

Beirut’s port district was a mangled wreck, disabling the main entry point for imports to feed a nation of more than 6 million people.

Ahmed Tamer, the director of Tripoli port, Lebanon’s second biggest facility, said his port did not have grain storage but cargoes could be taken to warehouses 2 km (about one mile) away.

Alongside Tripoli, the ports of Saida, Selaata and Jiyeh were also equipped to handle grain, the economy minister said.

“We fear there will be a huge supply chain problem, unless there is an international consensus to save us,” said Hani Bohsali, head of the importers’ syndicate.

UN agencies are meeting on Wednesday to coordinate relief efforts for Beirut, Tamara Al-Rifai, a spokeswoman for the Palestinian refugee agency UNRWA, said from Amman. “People are extremely poor, it’s increasingly difficult for anyone to buy food, and the fact that Beirut is the largest port in Lebanon makes it a very bad situation,” she said.

“We are looking at Tripoli, but it is a much smaller port.”

Reserves of flour were sufficient to cover market needs for a month and a half and there were four ships carrying 28,000 tons of wheat heading to Lebanon, Ahmed Hattit, head of the wheat importers union, told Al-Akhbar newspaper.

Lebanon is trying to transfer immediately four vessels carrying 25,000 tons of flour to the port in Tripoli, one official told LBCI news channel.


Libya’s NOC says production to rise as it seeks to revive oil industry

Updated 22 September 2020

Libya’s NOC says production to rise as it seeks to revive oil industry

  • Libya produced around 1.2 million bpd – over 1 percent of global production – before the blockade
  • Libya’s return to the oil market is sustainable

LONDON: Libya’s National Oil Company said it expected oil production to rise to 260,000 barrels per day (bpd) next week, as the OPEC member looks to revive its oil industry, crippled by a blockade since January.
Oil prices fell around 5 percent on Monday, partly due to the potential return of Libyan barrels to a market that’s already grappling with the prospect of collapsing demand from rising coronavirus cases.
Libya produced around 1.2 million bpd — over 1 percent of global production — before the blockade, which slashed the OPEC member’s output to around 100,000 bpd.
NOC, in a statement late on Monday, said it is preparing to resume exports from “secure ports” with oil tankers expected to begin arriving from Wednesday to load crude in storage over the next 72 hours.
As an initial step, exports are set to resume from the Marsa El Hariga and Brega oil terminals, it said.
The Marlin Shikoku tanker is making its way to Hariga where it is expected to load a cargo for trader Unipec, according to shipping data and traders.
Eastern Libyan commander Khalifa Haftar said last week his forces would lift their eight-month blockade of oil exports.
NOC insists it will only resume oil operations at facilities devoid of military presence.
Nearly a decade after rebel fighters backed by NATO air strikes overthrew dictator Muammar Qaddafi, Libya remains in chaos, with no central government.
The unrest has battered its oil industry, slashing production capacity down from 1.6 million bpd.
Goldman Sachs said Libya’s return should not derail the oil market’s recovery, with an upside risk to production likely to be offset by higher compliance with production cuts from other OPEC members.
“We see both logistical and political risks to a fast and sustainable increase in production,” the bank said. It expects a 400,000 bpd increase in Libyan production by December.
The Organization of the Petroleum Exporting Countries and allies led by Russia, are closely watching the Libya situation, waiting to see if this time Libya’s return to the oil market is sustainable, sources told Reuters.