Lebanon, Syria, Egypt sign gas import agreement
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Loading... - Louis Robert
- 22 Jun 2022
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Lebanon, Syria and Egypt on Tuesday agreed to ship 650 million cubic metres of natural gas per year from Egypt to Lebanon via Syria, part of a U.S.-backed effort to address Lebanon's crippling blackouts with electricity and gas transfers.
The deal, signed at a ceremony at the Lebanese energy ministry in Beirut, would see gas piped to Lebanon's northern Deir Ammar power plant, where it could add some 450 megawatts, or around four extra hours of power per day to the grid.
Deir Ammar is one of several plants in Lebanon that can run on both gas and diesel, but use the latter as the gas pipeline has yet to come online.
The deal also still requires the approval of the World Bank, which has pledged financing, and the United States for compliance with its Syria sanctions regime, Lebanon's caretaker energy minister Walid Fayad told Reuters.
Fayad announced the agreement alongside representatives from Egypt and Syria, as well as Magdy Galal, chairman of the state-owned Egyptian Natural Gas Holding.
They did not disclose the financial terms.
A statement issued later by the office of Lebanon's caretaker prime minister Najib Mikati after his meeting with Galal and Egyptian ambassador Yaser Alawi quoted Alawi as saying the price offered was "30 percent less than global market prices."
Lebanon's state-run power company produces just a couple hours of power per day, forcing many to pay for expensive private generator subscriptions.
U.S. officials say they have given countries "pre-clearance" to engage in talks without the spectre of sanctions but could only fully determine compliance once contracts were signed. Read More...
