Syria Energy Ministry Says Imports Still Drive Costs

Syria’s push to rebuild oil and gas output matters because it is really a race to cut a crushing hard-currency import bill that is distorting the wider economy, propping up fuel shortages and keeping electricity costs elevated.
At a hearing before the People’s Assembly, Energy Minister Mohammed al-Bashir said Syria is spending about $831 million a month on crude and refined products, including 6.3 million cubic meters of gas a day for power generation. That scale of spending underscores how deeply the country remains dependent on imported energy even as it tries to stabilize supply at home.
The ministry says local crude output is about 112,000 barrels a day, against a refining capacity of 150,000 barrels and imports of roughly 150,000 barrels of products a day. Bashir also said Syria needs 24 million cubic meters of gas daily, but is producing only 8 million, up from 6 million, leaving a gap that still has to be plugged by imports from Azerbaijan and shipments via Jordan.
For investors, the key point is that Syria’s energy deficit is not just an oil story — it is a balance-of-payments story, a fiscal story and an infrastructure story. Every barrel and cubic meter produced locally reduces foreign-currency leakage, while every delay in rehabilitation keeps the country exposed to volatile global prices and logistical bottlenecks. That makes upstream repair, pipeline work, refining maintenance and gas infrastructure the real economic prize.
Bashir said Syria has 78 oil fields and is working to rehabilitate wells and rebuild infrastructure, including temporary closures for safety and a full overhaul of the Baniyas refinery. The ministry is also keeping the Homs refinery running despite its poor condition until new refineries are built. It has asked for bids to complete the Arab Gas Pipeline segment from Jordan, a project valued at about $250 million.
The strategy is ambitious: the ministry says Syria wants to reach oil self-sufficiency by 2028, while gas production may take seven years to reach “satisfactory” levels. That timeline matters because the faster Syria can close the gap, the less it will be forced to buy fuel abroad in a market where supply remains tight and geopolitical risk is still high.
The investment takeaway is straightforward: the market should watch this as an energy-infrastructure recovery trade, not a headline about domestic fuel pricing. If Syria can secure financing, equipment and stable supply arrangements, the biggest winners are likely to be contractors, pipeline operators, refinery-service providers and regional suppliers tied to the rebuild. The losers are importers, fuel traders and any economy still dependent on dollar-funded energy purchases.
| Entity | Gains | Losses |
|---|---|---|
| Syria’s energy ministry | ▲Supply security | ▼Import dependence |
| Domestic power sector | ▲More gas feedstock | ▼Fuel shortages |
| Regional suppliers | ▲Export demand | ▼— |
| Global fuel importers | ▲— | ▼Hard-currency outflows |