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Mazut - by Noam Raydan

Hello there, Noam here. 

Today I share an article I published this month with the Middle East Economic Survey (MEES) on Lebanon's refined petroleum imports for power generation as the country battles multiple crises. But before I get to that, I would like to share with you a personal experience with a power generator I learned how to operate at a young age.   

I used to struggle with the smell of mazut (referring to diesel) on my hands. I had to wash them vigorously and repeatedly. That was always the case whenever I had to carry the mazut can to start the power generator. I always preferred the role of the flashlight carrier - the one who provided light to the person in charge of feeding the beast with fuel. That person used to be either my father, sister, or brother. The red moteur (generator) was part of the family. It was bought in the 1990s after the end of the Lebanese civil war (1975-1990). We relied on it during power outages, along with candles and fluorescent tubes. Many Lebanese were seeking a decent living in a hostile country (and still do). And all this was normal just like these casual lines. 

The family drama began with a power cut. During that moment, every activity was interrupted abruptly—from complaining to cooking, watching the news, studying, thinking about tomorrow. "Who's going to turn on the moteur?" my mother used to ask. That was a profound existential question no one wanted to answer, especially during those winter evenings when the night was cold, bitter, and unforgiving just like post-war Lebanon. No one wanted to leave the warmth of a kitchen where we used to gather around the iron fireplace stove. But in the end, two members of the family had to brace for the mission.  

Before gaining the required skills to start operating the generator, I was a flashlight carrier. I used to stand still while my brother or sister poured mazut into the tank. The flashlight provided illumination. All this was normal.

The sound of the generator was traumatizing for me and the cats that used to crouch in the garage, observing the human process of creating light. Before the beast was awakened, I used to run, cover my ears, and wait for my father or siblings at a distance while directing the flashlight at them, somehow. The noise was loud. It was normal.  

From a flashlight carrier to a power generator operator, I never imagined I would continue to progress and become a tracker of oil tankers carrying refined products to Lebanon for power generation, including diesel.

Lebanon's fuel imports is a subject I have been researching for years now and before the crisis that started in 2019. When I was an analyst covering the impact of geopolitics on the production and export of oil in the MENA region, I worked on a project in 2018 that focused on US residual fuel oil exports to Lebanon where this dirty fuel has been burnt at power plants in Zouk (north of Beirut) and Jiyeh (south of Beirut). After the crisis, I worked on various pieces to explain how Lebanon’s oil imports sector operates as the electricity problems we faced during and after the Lebanese civil war re-emerged post 2019. Lebanon’s energy sector has never undergone true reforms since the war.

In my latest piece for MEES — a weekly publication that provides data-driven analysis on the region's oil and gas industries — I focus on the flow of three oil products, fuel oil, gasoil, and ultra-low sulfur diesel (ULSD) which are all used for public and private power generation. 

Lebanon’s financial meltdown and the state’s failure to enable anything approaching reliable electricity provision have triggered major shifts in the country’s oil products imports in recent years. New trends in gasoil and fuel oil imports for state-run coastal power plants and in ULSD for private power generators across Lebanon are becoming increasingly embedded.

As Lebanon fails to keep the lights on, the government has looked to Iraq to help supply it with essential petroleum products via a convoluted swap deal. Meanwhile, Lebanon is operating in a global market buffeted by the fallout from Russia’s February 2022 invasion of Ukraine, with trade patterns still in flux.

With the government struggling to navigate a deepening economic crisis, fuel oil shipments for power plants declined sharply in 2022. Meanwhile, with electricity provision increasingly unreliable as a result, private sector ULSD imports have strengthened.

At the same time, the sources of Lebanon’s oil product shipments have changed in recent years. This has been due to the financial crisis and global geopolitical developments that have forced the country to source its fuel needs from sellers willing to deal with a high-risk country like Lebanon.

In my work, I discuss the following trends:

1) Fuel oil shipments originating from the US since 2006 came to a halt in 2021 as the US lowered exports.

2) Turkey has become a leading source for diesel flows to Lebanon. Turkish official data indicates that Lebanon is now a top market for its diesel exports.

3) While direct fuel cargoes from Russian refineries to Lebanon have seen a sharp decline since 2021, data shows that at least two recent cargoes believed to be carrying Russian gasoil originated from ship-to-ship (STS) transfers off Greece’s Kalamata. The latter has become a major hub for Russian oil STS transfers following western sanctions on Moscow.

If you’re interested in this topic, you can read my in-depth work here. Those who don’t have access can reach out to me directly and I’d be happy to provide a copy.

Some of my other in-depth and data-driven work on Lebanon’s oil imports and energy sector in general can be viewed below:

The Saga Of Lebanese-Iraqi Oil Talks: An Opportunity To Understand How Lebanon’s Public Energy Sector Operates

How One Power Plant Reveals The Risks Of Using Iraqi Fuel Oil In Lebanon

Will Iranian fuel allow Hezbollah to solve Lebanon's energy crisis?

Why Iran-Lebanon energy cooperation remains a mirage

Does Lebanon Really Need Iranian Or Iraqi Fuel Supplies?

Turkey-Syria LPG Shipments & The Lebanon Link

Thank you for reading my work. In the next few days, I will be publishing a piece that explores India-Iraq historical ties. If you’re interested in the subject, make sure you’re subscribed to THE CHOKEPOINT. Until then, have a good journey.

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Update: 2024-12-02