Syria has resumed fuel shipments from its largest refinery, the Banias refinery, marking its first export in over six months. The announcement made on June 16 signals a step towards normalization in the nation’s troubled energy sector. The 120,000 barrels per day (b/d) facility was taken offline late in 2024 after the fall of President Bashar al-Assad, which led to Iran halting crude oil shipments essential for its operations.
In April, the situation began to improve with new crude deliveries from Russia, a supporter of the former regime, allowing the refinery to restore some production. Recent sanctions waivers from the United States and EU have opened doors for potential supply links, with Syrian officials aiming to rejuvenate the country’s oil export business. On June 16, the state-backed Syria Trading Oil Company (Sytrol) announced the shipment of 30,000 metric tons of petroleum from the Banias terminal, marking a significant milestone for the refinery that had been dormant for several months.
Gayath Diab, Director of the General Administration of Oil in the Ministry of Energy, described this event as “an honorable beginning” for Syria’s return to oil export markets. The vessel Velos Fortuna, a Medium Range tanker registered in the Marshall Islands, was the first to lift product from the refinery, arriving from Libya and loading clean oil products before departing six days later. Currently, the tanker’s signal does not indicate a final destination.
As the new regime, Hayat Tahrir al-Sham (HTS), works towards stabilizing the country, experts suggest that crude oil exports will likely be prioritized over refined products. Before the onset of civil war in 2011, Syria was a significant crude exporter, contributing $3 billion annually to its economy. However, even at full capacity, the country’s two main refineries—Banias and Homs—could not meet local fuel demand, leading to a significant import deficit prior to the conflict.
Damage sustained during the war further diminished refining capacity, with existing infrastructure only able to serve about 70,000 b/d against a need significantly higher. Consequently, the focus is expected to shift to providing essential gasoil and LPG for local consumers, particularly for power generation and cooking, as energy access is deemed critical for recovery. In response to ongoing fuel shortages, Syria’s Ministry of Petroleum and Mineral Resources has issued tenders for LPG, gasoline, diesel, and crude oil, emphasizing the urgency of supply needs.
Notably, Turkey has emerged as a key LPG exporter to Syria, while Russia continues to supply gasoil and crude. The international community’s posture towards sanctions will play a vital role in the country’s ability to rebuild its refining infrastructure and ensure energy security as it strives for stability.