Iraq has agreed to meet Lebanon's needs for oil derivatives to operate electricity production plants. The Iraqi government has also decided to increase the volume of heavy fuel oil supplies to Lebanon, under an existing agreement by 50% to 1.5 million tons this year.
Lebanon is struggling to boost electricity production to help it emerge from a years-long economic crisis. The deals were part of Lebanon's attempts to improve electricity supply, Energy Minister Walid Fayyad said earlier this May. The deal includes a deferred payment mechanism for a period of 6 months from the date of receipt.