Thread on #Iran-#Lebanon energy talks through history, and recent reports about Iranian fuel oil "donation" to Lebanon for power plants (which require different oil products of different specs), with a focus on what Beirut-based Al Akhbar newspaper said earlier today:
1)Lebanese-Iranian energy talks date back to at least 2000. That year, Tehran offered to upgrade Lebanon's power plants&refineries amid talks of "resuming" crude oil flows from Iraq's Kirkuk to the Med. This did not happen, and talks remained talks.
2)In October 2010, #Iran offered to assist Lebanon in addressing chronic electricity shortages,& oil & gas exploration when former energy minister Gebran Bassil went to Tehran on an official visit. Later that month, former Iranian President Mahmoud Ahmadinejad visited Beirut.
3)Moving to 2011, the Lebanese cabinet approved an MOU between Iran& Lebanon on energy projects, but no concrete steps were taken with respect to the MOU.
4)In 2012, an Iranian delegation visited #Beirut where Iran’s Former First Vice President Riza Rahimi said Tehran agreed to invest in construction of power plants, & export of electricity to Lebanon via Syria & Iraq. Iranian energy proposals never got off the drawing board.
5)The 2012 Iranian visit overlapped with a visit to Beirut by former US Assistant Secretary of State for Near Eastern Affairs Jeffrey Feltman. Talks back then focused on sanctions on Damascus, Tehran, and Hezbollah, in addition to developments in Syria.
6)Between 2017 and 2020 (after the Beirut port blast), Iran renewed its electricity-related offers. There has been no official acceptance as of now. In 2021, Iranian diesel reached Lebanon's Hezbollah, but via Syria. It was distributed in different Lebanese areas.
7)Moving to the Lebanese "technical" delegation now in Tehran and today's news about Iranian fuel oil (600,000 tons) offered as a "donation" to Lebanon amid power outages: I will begin with what Al Akhbar newspaper reported this morning, and take it from there.
8)Al Akhbar quoted a source as saying: "The Lebanese energy ministry's delegation is not specialized in power plants but oil products." The source also said the Iranian fuel oil (FO) will need to be swapped similar to what's happening now with Iraqi FO because of specs issues.
9)Talking about fuel for power plants requires knowledge about Lebanon's power plants that run on gasoil and those on fuel oil and from where to obtain these oil products.
10)Below is an example of the specifications of the heavy fuel oil (so-called Grade A) used at the old Zouk (1984) and Jiyeh (1970) power plants (steam turbine), which generate power at a loss.
These are not to be confused with the Jiyeh and Zouk reciprocating engines (2017).
11)On the issue of Sulfur (S) content, fuel oil Grade A is to be rejected if the S content is more than 1pc. Argus @Bacharelhalabi and @ncitayim also quoted today Lebanese source saying Iranian fuel oil will be more than 1pc.
12)Iranian fuel oil (FO) just like Iraqi FO is high in sulfur. Iranian FO is 3.5pc S. Sulfur turns into pollutant when burned &that's why high sulfur fuel oil shouldn't be used in power plants close to residential areas like those of Zouk & Jiyeh. No politics here,only facts.
13)Other key power plants, Zahrani and Deir Ammar (Siemens manufacturer of turbines) run on gasoil not fuel oil. Specs here are very important too. Last year, there were issues with two oil cargoes due to specifications and there were delays in offloading amid power outages.
14)Al Akhbar and other reports have mentioned that the Iranian fuel oil offered as a "donation" to Lebanon may be swapped with a different oil product compatible with Lebanese standards. But unlike Iraqi oil, Iranian oil is sanctioned. So how will the swap happen?
15)It has been established by now that US sanctions have not stopped Iran from exporting its oil, and yes there are countries that need high sulfur fuel oil. But swap deals cannot help ease Lebanon's power outages. We have seen the results of the swap deal with Iraq.
16)Despite divergent Lebanese stances on #Iran, it is a country Lebanon can seriously cooperate with in energy areas ( building power plants), because it has the capabilities.But for the nth time,Lebanon's energy sector needs to be reformed first.Think of curbing losses first.
17)The Lebanese "technical" delegation will return to Beirut tomorrow, and probably more details will emerge on the talks in Tehran from the Lebanese government.
18)If interested in reading more about Iranian-Lebanese energy talks , you can check the article I wrote last year for @amwajmedia . amwaj.media/article/can-le…
On Iraqi-Lebanese oil talks, you can check my 2021 investigative report, turned documentary: bit.ly/3ShsvYr
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#Iraq's oil ministry announced today the "start of trial operations" at the 140,000 bpd Karbala refinery- considered part of Iraq's refinery upgrade plans to address product imbalance & improve product yields. (Photo circulated by the oil ministry) #OOTT . More below:
2) Iraq will most likely continue to remain a net importer of gasoline and gasoil through 2030, some have noted.
3) Other refineries have undergone some upgrades. For example, in 2021, the oil ministry announced the addition of an isomerization unit and a reforming unit at the old Daura refinery with a capacity of 10,000 bpd to convert naphtha to higher-value gasoline blendstock.
#Lebanon: My new work for @amwajmedia on the current disorder in Lebanon’s energy sector: what triggered it, immediate solution to allow discharge of more fuel ships- ready to be offloaded- &Hezbollah’s narrative of need for Iranian oil in light of this: bit.ly/3mgifTI
I focus 1) on the abdication of a govt body that has long presented itself as a "market regulator", & the distribution+ sales problems compounded by the state's short-sighted fiscal policies, causing delays in unloading oil tankers that have continuously called on #Lebanon.
2)Given the popular anger with the energy crisis, Hezbollah has found a way to create a narrative for its support base that justifies the need for Iran’s oil. It has also succeeded in presenting itself as a party with solutions- regardless of their impact on the national level.
#Lebanon: Guess it’s time for a thread on Lebanon’s energy imports sector due to some misinformation.
1)Oil tankers in general have never stopped calling on Lebanon. Tankers laden with fuel oil ( for power generation), gasoil/diesel, gasoline, and LPG (cooking gas). Lebanon is not under "siege" as some continue to say without offering solid data.
2)The problem is the financial crisis that has made it difficult to pay for oil imports whether those for power generation ( EDL) for example or the private sector (gasoline). But some tankers are waiting more than others. Some are offloading in a short period.
On Lebanon's civil society: I have noticed that a number of observers are trying to understand the #LebanonProtests. The protests are not magic.They’re product of years of work:The work of Lebanon's civil society that needs to be acknowledged. #لبنان_يثور#لبنان__ينتفض#Beirut
1)Many remember the protests in 2015 that were covered by international media- now since that year, activists managed to achieve successes in some areas for first time, challenging the existing political system they're fighting. I will focus on elections in 2017/18:
2) In 2017, civil society won in the Beirut Order of Engineers polls. Jad Tabet, backed by Beirut Madinati coalition was able to beat a candidate supported by traditional parties. That was a major victory for civil society. Read here: dailystar.com.lb/News/Lebanon-N…