Lebanon considering repaying Iraqi fuel with electricity and solar energy projects in Iraq, according to Jaber, Saddi

Finance Minister Yassine Jaber and Energy and Water Minister Joe Saddi concluded a two-day visit to Iraq on Tuesday, during which they discussed several issues with Iraqi officials, particularly in the fields of energy, electricity, communications and the oil supply line.

According to a statement from the Ministry of Finance, discussions revolved around cooperation in the electricity sector between Iraq and Lebanon and ways to pave the way for Lebanese private sector participation in electricity and solar energy projects in Iraq, utilizing payment methods planned under the agreement for the supply of Iraqi fuel to Lebanon.

This agreement, signed in the summer of 2021 and renewed since then, stipulated that Iraq, through SOMO, the state agency responsible for marketing oil, delivers a shipment of crude oil each month to a third-party company that would, in return, provide a corresponding quantity of fuel compatible with the power plants of Électricité du Liban (EDL). The new extension, signed by Joe Saddi on Feb. 12 and effective from March 1, provided for a quantity between 1.5 and 2 million tons over one year, which is 500,000 tons more than in the previous contract.

According to the initial terms of this agreement, the Ministry of Finance was supposed to deposit in an account at the BDL the equivalent funds for the quantities received, so that Iraqi authorities can spend these sums exclusively in Lebanon in exchange for services, the nature of which was not specified. These sums have not yet been spent.

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Jaber heads to Baghdad to boost Lebanon-Iraq coordination

Simultaneously, Jaber mentioned in his statement that Iraq committed to "sending 320,000 tons of wheat" to Lebanon, which will "soon be delivered to the Ministry of Economy." He also noted a serious discussion on future cooperation to restart the activity of the oil pipeline linking Iraq to Lebanon and the possibility of renovating the refinery located in North Lebanon so it can resume its activity once the situation in Syria stabilizes and fuel transportation can be made through its territory.

The Lebanese delegation concluded its visit to Baghdad with a meeting with Iraqi President Abdul Latif Jamal Rashid, who expressed his country's willingness to continue supporting Lebanon, fostering its development, and strengthening its stability.

The finance minister thanked "the presidency, the government and the Iraqi people for their compassion and assistance through the darkest circumstances Lebanon has faced," conveying greetings from President Joseph Aoun and Salam government to the Iraqi president and appreciation for the "role played by Iraq, whether by providing Lebanon with fuel for its electricity, or by hosting a large number of displaced people and offering them various social services."

Hezbollah and Israel were engaged in a conflict that began in October 2023, parallel to the war that erupted in Gaza, and intensified in September 2024 before a cease-fire was reached in November 2024.