Lebanon's new energy minister faces fragile recovery in oil demand outlook

Lebanon's new energy minister, Joseph Saddi, has formally taken office, with his appointment coming at a time when refined oil product imports are seeing a slow recovery after years of shortages, lack of investment and a tumbling currency.

Saddi was one of 24 ministers appointed to the new government, the National News Agency reported Feb. 8, citing an announcement by Council of Ministers' Secretary-General Jude Mahmoud Makiya.

Saddi, who replaces caretaker energy minister Walid Fayad, was a senior partner and chairman of Strategy&'s Middle East business, according to Al Arabiya news. Strategy& is part of the PwC network, formerly Booz & Co.

Refined product imports have begun to recover, with 83,000 b/d of gasoil and diesel imports landing in Lebanon last month, up from 63,000 b/d in December and the most since January 2017, according to S&P Global Commodities at Sea.

The new government follows the Nov. 27 ceasefire with Israel, as well as the wider Israel-Hamas peace deal.

The jet fuel demand outlook of Israel, Iran and Lebanon was raised 4,000 b/d for 2025 from last year, S&P Global Commodity Insights reported in a Jan. 27 Middle East outlook.

Lebanon has for years failed to secure an adequate fuel supply for its electricity sector. It had to rely on a complicated fuel swap deal with Iraq and spot market purchases -- as well as occasional fuel aid -- to supply around four hours of power a day via frail infrastructure. A network of haphazard private generator connections filled the electricity void for those who could afford the costly connections.

In August, it suffered what state utility Electricite du Liban called a "total blackout" after its fuel reserves ran dry.

Lebanon is suffering from an economic crisis that saw the country's currency lose more than 90% of its value against the US dollar since 2019. As a result, Beirut has struggled to pay for imports and has had to find creative ways to keep the lights on.

Various plans to deliver 24/7 power have faltered since the country's civil war in 1975-1990 as politics, budget constraints, and the occasional security instance stood in the way.