Syria's largest oil refinery halts as new leadership faces fuel crisis
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The refinery, which processes 90,000 to 100,000 barrels of crude daily, produced its last batch of petrol on Friday, according to its general manager, Ibrahim Mousallem.
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Picture shows a facade of the Baniyas refinery. (Google public data)
The Financial Times reported on Friday that Syria's largest oil refinery, Baniyas, has halted operations due to the cessation of crude oil shipments from Iran following the fall of former president Bashar al-Assad.
The refinery, which processes 90,000 to 100,000 barrels of crude daily, produced its last batch of petrol on Friday, according to its general manager, Ibrahim Mousallem.
"We are only doing maintenance that takes a short amount of time so that we are ready for when crude oil is made available," Mousallem told FT.
He added that Syria's new leadership has expressed optimism about lifting Western sanctions to facilitate oil imports and secure equipment for refinery repairs.
Under the former government, Syria imported 90% of its crude from Iran, with the remainder sourced domestically amid the US occupation of the country's biggest oil fields in the east.
However, the new government must now explore alternative suppliers to address a worsening energy crisis.
While Baniyas refinery relies on existing reserves to maintain fuel supply during the transition, Mousallem noted that the refinery cannot remain idle for long without risking equipment damage.
Energy crisis
The country is experiencing severe electricity shortages due to insufficient fuel for power plants. Idlib, the HTS stronghold, is the exception, as it receives electricity from Turkey.
Plans are underway to extend Turkish power lines to Aleppo, highlighting efforts to stabilize essential services in areas under the new leadership.
Read more: Debate rises over sanctions as Syria faces urgent humanitarian crisis
The HTS-backed interim government faces significant economic challenges, including fuel shortages and widespread poverty.
Wages for public sector employees remain as low as $25 per month, but the new leadership has promised salary increases of 300-400% to improve livelihoods.
Despite HTS being designated as a terrorist organization by the US, EU, and UN, western governments have begun engaging with its leaders to address urgent needs in Syria.
US Secretary of State Antony Blinken highlighted fuel shortages as one of the country's immediate challenges, noting the critical need to restore basic services and revive the economy.
Baniyas refinery has also been grappling with longstanding infrastructure issues, including damage from a 2022 earthquake.
Maintenance projects are underway while the refinery awaits new crude shipments.
The facility has experienced prolonged shutdowns in the past, with some lasting up to two months due to a lack of oil deliveries.
