Syria issues crude, products tenders: Correction

: Crude oil, LPG, Oil products
25/01/30

Corrects quality of gasoil sought in paragraph 4, from 10ppm to 50ppm. This story was originally published on 22 January

The new administration in Syria has issued its first tenders to buy crude and refined products since the fall of Bashar al-Assad's regime in December, as acute fuel shortages continue to cause lengthy blackouts in the country.

Tenders seeking 3mn bl of light crude for the 140,000 Banias refinery and 1.2mn bl of heavy crude for the 110,100 b/d Homs refinery close for bidding on 27 January. They have a 10pc flexibility either way on the volumes.

The Banias refinery is undergoing maintenance at several of its production units after being taken offline last month because of a lack of crude feedstock.

Syria's new administration has also issued its first import tender for refined products — 80,000t of 90 Ron gasoline, 100,000t of 50ppm sulphur gasoil and 100,000t of fuel oil — commencing as soon as possible for delivery over a 30-day period. Offers must be delivered by hand to the oil ministry in Damascus by 14:30 local time on 27 January.

A tender seeking 66,000t of LPG has been issued as well. A previous tender for 20,000t of LPG was awarded at mid-teen $/t premiums to fob Lavera west Mediterranean prices.

Before Assad was toppled, Syria relied heavily on Iran for its oil supplies, as international sanctions imposed in the wake of the 2011 civil war left the country critically short of feedstock for its refineries. Iran's crude exports to Syria averaged around 55,000 b/d in January-November 2024 and around 80,000 b/d in 2023, according to trade analytics firm Kpler. Iran was also sending around 10,000-20,000 b/d of oil products to Syria in recent years, according to consultancy FGE.

But Tehran has halted crude deliveries to Syria since the Islamist group Hayat Tahrir al-Sham took control last month, leaving the new transitional government under pressure to find alternative suppliers. Government-to-government deals are a potential option.

"Recent political developments have indicated that Qatar, Saudi Arabia and Turkey could play a role in solving Syria's crude and refined products shortage," FGE analyst Palash Jain said.

Saudi Arabia is willing to help for a limited period, but discussions remain in a preliminary phase and are light on details, a source with knowledge of the matter told Argus. Riyadh is waiting to hear more from the Syrians on their energy needs and requirements, the source added.

The latest tenders come just two weeks after the US waived sanctions that had previously prohibited energy trade with Syria. The waiver, issued on 6 January, is valid until 7 July.

By Rithika Krishna and Bachar Halabi

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25/03/03

German diesel demand rises with farming activity

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Looming tariff war adds to US refiner headwinds

25/03/03

Looming tariff war adds to US refiner headwinds

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Brazil’s new Atlanta FPSO exports first crude cargo

25/03/03

Brazil’s new Atlanta FPSO exports first crude cargo

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Ecuador awards Sacha field to Sinopec, Petrolia

25/03/02

Ecuador awards Sacha field to Sinopec, Petrolia

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Weak Canadian dollar may offset US tariffs: MEG

25/02/28

Weak Canadian dollar may offset US tariffs: MEG

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