Lebanon Businessnews News
 

ENOC wins first tender
to swap Iraqi oil for EDL fuel
One million tons to be replaced in one year by oil suitable for power plants
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The Ministry of Energy and Water (MoEW) said Emirates National Oil Co. (ENOC) has emerged as a winner in a tender to swap 84,000 tons of Iraqi black fuel for 30,000 tons of Grade ‘B’ heavy fuel oil and 33,000 tons of gas oil.

The black fuel was made available to Lebanon by Iraq at concessionary terms. The purpose of the exchange is to supply Electricité du Liban (EDL) with fuel compatible with its power plants.

ENOC is scheduled to take delivery of the black fuel between September 3 and 5 and will ship the heavy fuel oil and gas oil to Lebanon two weeks later, the MoEW said.

This is the first of monthly cargo spot tenders aiming to replace one million tons of black fuel that will be imported from Iraq over one year according to an agreement between the two countries. The quantities of black fuel to be swapped each month will range between 75,000 tons and 85,000 tons.

The other companies that have participated in the first tender are Kuwait-based Independent Petroleum Group (IPG) and Coral Energy DMCC which is a privately-owned firm incorporated in the Dubai Multi Commodities Centre (DMCC). A fourth company that was prequalified did not participate in the tender.
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Date Posted: Aug 27, 2021