Syria’s newly formed administration has issued its first tenders for crude oil and refined products since the collapse of Bashar al-Assad’s government in December. This step comes in response to the country’s severe fuel shortages, which have caused widespread power outages in recent months.
Now under the leadership of Hayat Tahrir al-Sham (HTS), a former Al-Qaeda affiliate, the government is seeking 3 million barrels of light crude for the Banias refinery, which has a processing capacity of 140,000 barrels per day (b/d), and 1.2 million barrels of heavy crude for the Homs refinery, with a capacity of 110,100 b/d. The deadline for bids is January 27. Meanwhile, the Banias refinery is undergoing maintenance after shutting down last month due to a lack of crude oil.
In addition to crude, the new government has issued tenders for refined products, including 80,000 tons of 90 Ron gasoline, 100,000 tons of low-sulfur gasoil, and 100,000 tons of fuel oil. A separate tender is seeking 66,000 tons of liquefied petroleum gas (LPG).
Before HTS took control of Damascus, with its leader Ahmad al-Sharaa (formerly Abu Mohammad al-Julani) becoming Syria’s de facto ruler, the country depended heavily on Iranian oil imports. According to trade analytics firm Kpler, Iran supplied Syria with an average of 55,000 b/d of crude between January and November 2024, compared to 80,000 b/d in 2023.
Iran also delivered 10,000–20,000 b/d of refined products annually in recent years, based on consultancy FGE’s data. However, after HTS seized power, Iran halted all crude shipments, leaving Syria urgently seeking alternative suppliers to alleviate the shortages, which have drastically limited electricity availability.
Most Syrian households currently receive only a few hours of electricity each day from the state grid. Many rely on private generators to bridge the gap, while others are left without power for long periods.
Syria’s energy crisis stems from the loss of its major oil fields in the eastern Deir Ezzor region during the conflict that began in 2011. These fields were captured first by the Nusra Front (which later evolved into HTS) in 2013, then by ISIS in 2014, and eventually by the US military and the Kurdish-led Syrian Democratic Forces (SDF) in 2017. US and EU sanctions have further restricted Syria’s ability to import oil, forcing reliance on Iranian supplies.
Currently, the US and SDF maintain control of Deir Ezzor’s oil fields, reportedly smuggling crude through Iraq and Turkiye. HTS has called for the dissolution of the SDF and the reintegration of northeastern Syria under state authority.
Qatar, Saudi Arabia, and Turkiye have emerged as potential players in addressing Syria’s energy crisis. While Saudi Arabia has expressed willingness to assist, discussions remain in early stages.
The situation unfolds as the US recently issued a temporary waiver on energy sanctions against Syria, effective from January 6 to July 7, potentially allowing more options for trade.
