The cost of Syria’s energy imports was at the center of remarks by Energy Minister Muhammad al-Bashir to the Syrian People’s Assembly. Bashir said the country needs $831 million each month to purchase crude oil and petroleum products.
The session held Sunday addressed the Energy Ministry’s work and increases in petroleum product prices. Bashir said Syria’s daily oil production stands at 112,000 barrels, while a shortfall of approximately 200,000 barrels is covered through purchases from abroad. The minister said the country has 78 oil fields and that work is under way to renew production infrastructure and bring wells back into operation.
Damascus sets 2028 oil target
The Energy Ministry established a committee to examine existing stocks and reserves and prepare a new map for oil and natural gas. Bashir said Syria aims to achieve oil self-sufficiency in 2028 under a strategic plan to increase production.
Bashir said natural gas production has risen to approximately 8 million cubic meters per day, compared with 6 million cubic meters previously. The minister said Syria’s daily natural gas requirement is 24 million cubic meters, adding that new wells will be drilled to increase production and that reaching satisfactory levels could take approximately seven years.
Syria purchases 6.3 million cubic meters of natural gas per day from Azerbaijan and from a vessel located at Jordan’s Port of Aqaba to meet part of its needs. Bashir said the monthly cost of these imports is approximately $140 million.
Import and refining capacity
Bashir said the country’s domestic refining capacity is 150,000 barrels per day and that the same amount of petroleum products is also imported. The minister attributed the increase in fuel demand to the rise in the number of vehicles from approximately 2.5 million to 3.6 million, saying daily needs stand at 12 million liters of diesel and 8 million liters of gasoline.
Power plants and the industrial sector consume an average of 8,500 tons of fuel oil per day, while households consume approximately 1,300 tons of liquefied petroleum gas. Bashir identified securing foreign currency for purchases of oil, petroleum products and spare parts, gaps in databases, and crude oil supplies among the energy sector’s main challenges.
Bashir said bids had been requested for completing the Arab Gas Pipeline from Jordan to strengthen natural gas supplies, adding that the approximately $250 million project would be financed by the Syrian Petroleum Company. He also said the Damascus administration was considering signing contracts with friendly oil-producing countries until self-sufficiency is achieved.
Plans to increase refinery capacity
Bashir said work was continuing to keep the Homs Refinery operational until new refineries are built because of its technical condition. The minister said extensive maintenance was being carried out at the Baniyas Refinery, with the aim of increasing efficiency and raising its daily processing capacity to approximately 130,000 barrels.
Youssef Qablawi, head of the Syrian Petroleum Company, also announced Thursday that a plan had been prepared to build a third refinery in the country’s eastern region, in addition to the Baniyas and Homs refineries.
Diesel price rises to 175 Syrian pounds
The remarks came approximately one week after an increase in petroleum product prices took effect on September 13. Under the regulation, the price of diesel rose from 125 Syrian pounds to 175 Syrian pounds per liter.
The Energy Ministry said the price change was prompted by higher import costs and the temporary shutdown of the Baniyas Refinery for maintenance. The ministry said the measure was temporary and that any decline in costs would be reflected in the domestic market.
Bashir announced Thursday that subsidized diesel sales would begin for heating, agriculture and groups covered by support programs in an effort to limit the impact. The price for these groups was set at 115 Syrian pounds per liter, while diesel for transportation and production and service activities was priced at 150 Syrian pounds per liter. Standard diesel will be sold at 175 Syrian pounds per liter.
The minister said the cost of standard diesel for the Syrian Petroleum Company is 206 Syrian pounds per liter.
