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First Gasoil Shipment Received By Lebanon Under Iraq Supply Deal

Lebanon received the first gasoil cargo under a fuel supply agreement with Iraq in July.

Lebanon has received the first cargo of gasoil under a fuel supply agreement negotiated with Iraq in late July to help ease the cash-strapped country's escalating fuel supply issue. 

According to Lebanon's ministry of energy and water, the ship carrying 31,000 tons(t) (231,000 barrels) of gasoil began discharging on September 17th. On that day, 15,000 metric tons of fuel were unloaded into the tanks of Lebanon's Deir Ammar power plant in the north with the remaining 16,000 metric tons dumped yesterday at the Zahrani facility in the south.

The vessel's name was not revealed by the energy ministry. The Kriti Episkopi, which departed on September 6 and arrived in Deir Ammar on September 17, hauled 32,200t of gasoil from Georgia according to Vortexa. The vessel is presently moored off the Zahrani power station.

As per the ministry, the gasoil shipment began to unload after the General Directorate of Oil in Lebanon and the pertinent monitoring companies confirmed that the gasoil specifications were met. The parameters of the gasoil commonly used at the Deir Ammar facility have not yet been confirmed by Argus but the Zahrani plant typically uses gasoil with a maximum sulfur concentration of 0.2 percent.

The Lebanese government would acquire and resell 1 million tons of heavy fuel oil from Iraq through monthly spot tenders - in cargoes of 75,000 - 85,000t - on behalf of Lebanon's leading power supplier Electricite du Liban for one year under the supply agreement struck with Iraq (EDL). According to Lebanon, the sale will cover around a third of EDL's yearly gasoline demands tying the country over for about four months.

This first shipment was part of a tender issued in late August to Dubai's state-owned Enoc to swap 84,000t (542,000 bl) of Iraqi fuel oil for 30,000t of a certain grade of fuel and 33,000t (246,000 bl) of gasoil for use in Lebanon's power plants.

A "Grade B" fuel oil vessel is expected to arrive in Lebanon by the end of September, according to Lebanon's energy ministry.

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