BEIRUT: Iraq’s government has agreed to continue supplying Lebanon’s electricity company with heavy fuel oil for another year in exchange for in-kind services, Lebanon’s caretaker prime minister said on Thursday, alleviating pressure on Lebanon’s struggling power grid.
Najib Mikati said he had made the request to Iraq’s Prime Minister Mustafa Al-Kadhimi, who agreed to extend the same terms of the agreement signed last year.
Iraq signed an agreement in July 2021 to give cash-strapped Lebanon one million tons of fuel oil to help keep the lights on, in exchange for services including health care for Iraqi citizens, as the country grapples with power cuts up to 23 hours a day during an unprecedented economic crisis.
“The Iraqi government, headed by Mr.Mustafa Al-Kadhemi, approved in a meeting today... to extend the supply of fuel to Lebanon... for a period of one year, under the same conditions as before,” Lebanese Prime Minister Najib Mikati’s office said in a statement.
For the past year, Lebanon’s power plants have depended on the deal with Iraq to produce one to two hours of electricity per day.
Residents in the poverty-stricken country largely rely on expensive private generators for power the rest of the time.
The Iraqi oil cannot be used directly by Lebanon’s power stations, so Beirut will continue to buy compatible fuel from other providers which will receive the Iraqi oil in exchange.
At the time of signing, last year’s deal was worth $300-$400 million, Raymond GHajjar, the Energy minister at the time had said.
As fuel prices shot up, the deal is now worth an estimated $570 million, Lebanon’s Energy Minister Walid Fayad told AFP last month.
An Iraqi ministerial delegation is expected to visit Beirut shortly to agree on the in-kind services that Baghdad wants in return for the fuel, Fayad said.
Iraq is a member of the Organization of the Petroleum Exporting Countries (OPEC) but suffers from its own electricity shortages.
Lebanon is battling one of the planet’s worst economic crises since the 1850s, and the state-run electricity company faces dire cash shortages.
(With AFP and Reuters)
Iraq to supply Lebanon with fuel for electricity for another year: Lebanese PM
https://arab.news/jgfrs
Iraq to supply Lebanon with fuel for electricity for another year: Lebanese PM
- Iraq has agreed to renew a one-year deal to provide Lebanon with fuel for its power plants in exchange for in-kind services, Lebanon’s Najib Mikati says
- Iraq signed an agreement in July 2021 to give cash-strapped Lebanon one million tons of fuel oil to help keep the lights on
Saudi Arabia, Turkiye sign government agreement on renewable energy power plant projects
RIYADH: Saudi Arabia and Turkiye have signed an agreement on renewable energy power plant projects.
This took place during the official visit of Turkish President Recep Tayyip Erdogan to the Kingdom and within the framework of strengthening bilateral relations as well as consolidating strategic cooperation between the two countries in the energy sector.
The agreement was signed on the Saudi side by Prince Abdulaziz bin Salman, minister of energy, and by Alparslan Bayraktar, minister of energy and natural resources, on behalf of the Turkish side.
The agreement aims to enhance cooperation between the two countries in the fields of renewable energy and green technologies, and to support the development and implementation of high-quality projects that contribute to diversifying the energy mix, enhancing energy security, and accelerating the transition to a low-carbon economy, in line with the priorities and strategies of both countries.
The agreement includes the development and implementation of solar power plant projects in Turkiye, with a total installed capacity of up to 5,000 megawatts, in two phases.
The first phase entails two solar power projects in Sivas and Karaman, with a total capacity of 2,000 MW. The second phase includes additional projects to be implemented according to the frameworks agreed upon by both parties, with an additional capacity of 3,000 MW.
The projects in the first phase offer highly competitive electricity prices compared to other renewable energy plants in Turkiye. Furthermore, these plants, representing an investment of approximately $2 billion, will supply electricity to more than two million Turkish households.
A Turkish state-owned company will purchase the electricity generated by these plants for a period of 30 years. During the implementation of the projects, the local use of equipment and services will be maximized.
Both sides affirmed that this agreement represents a significant step towards strengthening the investment partnership between the Kingdom and Turkiye.
It also reflects the mutual trust between the two countries and their shared commitment to expanding cooperation in strategic projects with sustainable economic and developmental impact, in accordance with best international practices, while contributing to knowledge transfer, capacity building, and achieving mutual benefits for both nations.
Trade exchange between the Kingdom and Turkiye increased by approximately 6 percent year on year during the first 11 months of last year, reaching around SR28.2 billion ($7.5 billion), according to the Financial Analysis Unit at Al-Eqtisadiah newspaper, based on data from the General Authority for Statistics.
This indicates the continued development of trade relations between the two countries and improved flows of goods,
The data revealed that Saudi exports constituted 58 percent of total trade exchange, compared to 42 percent for imports, resulting in a trade surplus for Saudi Arabia of SR4.4 billion.
During this period, Saudi exports amounted to approximately SR92.6 billion, compared to imports of Turkish goods worth SR48.3 billion, resulting in a cumulative trade surplus in favor of Saudi Arabia of SR44.3 billion.
Speaking at the Saudi-Turkiye Investment Forum 2026, Chairman of the Saudi-Turkish Business Council Sami Al-Osaimi said that 1,400 Saudi companies are in Turkiye with investments exceeding $18 billion, compared to 390 Turkish companies investing in the Saudi market, according to a statement.
