Lebanon seeks to extend heavy fuel oil agreement with Iraq

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Lebanon seeks to extend heavy fuel oil agreement with Iraq

Lebanon made the announcement that it is working to extend and increase Iraq’s heavy fuel agreement.

Walid Fayad, the interim Minister of Energy and Water for Lebanon, stated in a press release that Iraq supports Lebanon in the energy sector and that he hopes the agreement will be extended for at least another year, bringing the total to two million tons, dinaropinions.com.

In July 2021, Lebanon and Iraq agreed to import one million tons of heavy fuel oil to assist Iraq in producing electricity to prevent blackouts.

On September 16, 2021, Lebanon received the initial 31,000-ton shipment of heavy fuel oil from Iraq.

Heavy fuel oil is a type of oil that comes from cracking and distilling petroleum and has a viscosity similar to tar.

Under the terms of the agreement, Iraq gives fuel oil to Lebanon, which is going through the worst economic crisis it has ever seen, in exchange for goods and services that Iraq would get from Lebanon.

The Iraqi government made the decision in August 2022 to extend the agreement with Lebanon in response to the difficult circumstances that the Lebanese people are currently experiencing.