Syrian Baniyas Oil Refinery Halted Operations

SEATTLE (Oil Monster): Baniyas oil refinery- the largest oil refinery in Syria, announced that it has halted operations following stoppage of crude supply from Iran, which accounted for much of the refinery’s input. As per trade data, Syria imports nearly 90% of its crude from Iran, with the remaining 10% coming from domestic oilfields.

The Baniyas oil refinery produced its last batch of petrol on Friday. The refinery officials plan to carry out basic maintenance works at the facility, so as to make it ready by the time crude supply is restored. Reportedly, the refinery’s maintenance works are aimed at addressing ageing infrastructure including chimneys, in addition to the damages caused by the 2022 earthquake. Incidentally, Syria operates a refinery facility in Homs, with a much lesser processing capacity.

Oil shortage has been a major issue faced by the interim Syrian government in its efforts to revive the economy by keeping basic services functioning. According to US secretary of state Antony Blinken, shortage of fuel is one of the immediate needs that the new Syrian administration needs to address. As per sources, Syria is exploring all possibilities to ensure imports of both crude oil and its derivatives from various sources.