Lebanese PM Nawaf Salam Arrives in Baghdad to Discuss Iraqi Fuel Supply

Lebanese Prime Minister Nawaf Salam arrived in Baghdad on Sunday, leading a high-level government delegation for an official visit during which he will hold discussions with Iraqi Prime Minister Ali Falih Al-Zaydi.

The government spokesperson, Haider Al-Aboudi, stated that Al-Zaydi will conduct a bilateral meeting with Salam, followed by an expanded session including ministers responsible for cooperation between the two countries. The talks will focus on enhancing bilateral relations and broadening cooperation in developmental fields and the energy sector, as well as addressing regional and international issues of mutual interest.

The visit centers primarily on energy matters, with both sides aiming to renew the agreement for supplying Lebanon with Iraqi fuel oil used to operate power plants. They will also explore mechanisms to develop the agreement in ways that serve the interests of both countries and ensure continued collaboration in this sector.

Financial and economic advisor to the Lebanese Prime Minister, Mazhar Mohammed Saleh, emphasized that the visit carries economic dimensions beyond its political framework, chiefly the renewal of the contract supplying Lebanon with Iraqi fuel for electricity generation.

In a press statement, Saleh explained that "any new agreement will serve as a strategic artery linking Baghdad and Beirut through mutual economic interests." He added that "the discussions are not limited to energy but also include enhancing trade exchange, encouraging joint investments, and facilitating the movement of businessmen and goods between the two countries."

Saleh further noted that the visit opens the door to discussing transport and regional connectivity projects, including proposals to use Lebanese territory as an additional gateway for Iraq to the Mediterranean Sea. This would provide Baghdad with a new commercial window to global markets and support diversification of its trade routes and future oil exports.

During the visit, both parties will also consider opportunities to expand trade exchange and promote joint investments, alongside transport and regional linkage projects. These include proposals for utilizing Lebanese land as an additional outlet for Iraq to access the Mediterranean, enhancing Baghdad's commercial options and opening new pathways for exporting oil and goods.

Iraq began supplying Lebanon with fuel oil in 2021 under an agreement to provide heavy fuel oil used in electricity generation, in exchange for services and goods from Lebanon. However, Iraqi lawmakers have stated that this part of the agreement has not yielded the expected results over the past years.

The agreement has undergone several extensions, with supply quantities increasing from one million tons annually to two million tons, as part of Iraq's ongoing support for Lebanon's electricity sector. Lebanon's financial obligations to Iraq under this arrangement have reached approximately $2.7 billion.