Iraq extends oil supply to Lebanon and offers subsidy and EDL begins supplying fuel to displaced shelters

Iraq extends oil supply to Lebanon and offers subsidy and EDL begins supplying fuel to displaced shelters
Iraq extends oil supply to Lebanon and offers subsidy and EDL begins supplying fuel to displaced shelters

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The Lebanese Acting Minister of Energy and Water announced that he had received confirmation from the Iraqi government regarding the extension of the fuel supply agreement between Iraq and Lebanon until the end of January 2025. This agreement will allow Lebanon to benefit from a continuous supply of oil, essential to meet the energy needs of the country in crisis.

Extended energy support from Iraq

According to the Lebanese Minister of Energy, the Iraqi authorities informed Lebanon, via the Iraqi oil company SOMO, of an exceptional donation of 15 million liters of diesel, with an estimated value of 10 million dollars. This fuel will be transported with specific arrangements to guarantee delivery within the planned time frame.

This announcement came alongside the Lebanese ministry's decision to distribute diesel to internally displaced persons (IDP) shelters in accordance with a recently approved needs-based plan. This program covers diesel needs for heating and powering private generators used by these shelters.

Logistical measures for transport and distribution

The decision to distribute this fuel follows discussions with several oil companies regarding acquisition, transportation and distribution mechanisms. Companies involved in the process will receive $13.6 per 1,000 liters of fuel transported, a reduction from the original cost of $17. This decrease reflects a collective effort to absorb part of transportation-related expenses.

A total of ten companies were selected to oversee distribution throughout Lebanon. These companies were chosen because of their logistical capabilities and their fleet of tankers large enough to cover all Lebanese regions.

The EDL and Efforts to Stabilize the Grid

At the same time, Electricity of Lebanon (EDL) has stepped up its efforts to provide additional energy support, particularly in areas housing internally displaced people where demand on the network is increasing. The organization is also working to resolve technical issues hampering the transmission and distribution of electricity, exacerbated by damage to the grid during recent conflicts.

Crucial aid for a country in crisis

As part of the agreement, the Lebanese government had previously approved an advance of $11 million, enabling the distribution of approximately 16 million liters of diesel over a 16-week period, at a rate of one million liters per week. . This measure, combined with Iraqi support, offers a breath of fresh air to a country where the energy crisis continues to have a devastating impact on daily life and public infrastructure.

This cooperation with Iraq is an example of the regional solidarity essential to helping Lebanon overcome its multiple crises. However, implementing these initiatives will require careful coordination to ensure that aid actually reaches those who need it most.

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