Crude Oil Shortage Halts Baniyas Refinery
Syria’s largest oil refinery, the Baniyas facility, has halted operations following a cessation of crude oil deliveries from Iran, which had supplied the majority of its input. Ibrahim Mousallem, the refinery’s general manager, confirmed the shutdown, revealing that the refinery produced its last batch of petrol on Friday. Processing between 90,000 to 100,000 barrels per day, Baniyas is a vital part of Syria’s energy infrastructure. While the facility has now shifted its focus to short-term maintenance, Mousallem assured that it would resume operations as soon as new crude shipments arrive.
The refinery’s shutdown comes in the wake of a leadership change in Syria, led by the interim government installed by the Islamist group Hayat Tahrir al-Sham (HTS). The new leadership hopes for the eventual lifting of Western sanctions, which would allow Syria to secure oil imports from alternative sources and acquire essential equipment for the refinery. Despite the uncertainty, Mousallem noted that fuel reserves remain sufficient for now, stating, “There is a decent amount in storage, and the situation is stable.”
Sanctions and Fuel Shortages Challenge New Leadership
The new interim Syrian government, formed after HTS seized control of most of the country, faces mounting challenges, particularly severe fuel shortages. The situation is exacerbated by Western sanctions imposed on Syria’s state and on HTS, which is designated as a terrorist group by the US, EU, and UN. Nevertheless, Western powers have begun engaging with HTS leadership amid pressing humanitarian concerns.
US Secretary of State Antony Blinken underscored the urgency of addressing Syria’s fuel crisis, stating, “A shortage in fuel has to be addressed so that the lights can be turned on, the stores can open, and people can get around.” Iran, a longstanding ally of Syria’s former regime, previously provided financial support and crude oil that circumvented US sanctions. With the ousting of Bashar al-Assad, the new leadership must now secure alternative oil supplies to meet energy demands, particularly as winter looms. Syria’s only other refinery, located in Homs, operates at a much lower capacity, further straining the country’s ability to process crude oil domestically.
Efforts are underway to maintain fuel distribution during this transitional period. Mousallem revealed that petrol stations were instructed to utilize reserves initially, though supplies have since been replenished. Meanwhile, power shortages remain a widespread issue across the country, except in Idlib, where electricity is supplied from Turkey. Plans are also in progress to extend Turkish power lines into Aleppo to address some of the energy deficits.
Maintenance and Economic Recovery Efforts
The Baniyas refinery had been stockpiling oil products since 2020 in preparation for maintenance work requiring a two-month operational pause. However, Mousallem highlighted ongoing structural issues at the facility, including a damaged chimney and earthquake-related damage from 2022, that require immediate attention. Although the refinery is hastening smaller maintenance tasks, Mousallem warned that prolonged inactivity could lead to equipment corrosion. He cited past instances between 2017 and 2020 when oil shortages forced the refinery to shut down for up to two months.
The new interim government has also pledged economic reforms, including raising public sector salaries by 300–400%. Government wages, currently averaging just $25 per month, have driven many workers to take multiple jobs or rely on remittances from abroad. Mousallem observed that while representatives of the new leadership are actively engaging with refinery officials, they remain in a learning phase, focused on understanding the operations of Syria’s critical institutions.
As Syria navigates this turbulent period, securing alternative oil sources and addressing energy infrastructure issues will be crucial for the new government to stabilize the economy and restore essential services.
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