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    Lebanon, Egypt Sign Natural Gas MoU to Support Power Generation, Supply Deir Ammar Power Plant

      Lebanon and Egypt signed on Monday a memorandum of understanding to meet Lebanon’s needs for natural gas used in electricity generation, marking a key step toward easing the country’s chronic power shortages.

      The agreement was signed at the Grand Serail by Lebanon’s Energy Minister Joe Saddi and Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi, under the patronage of Prime Minister Nawaf Salam.

      Speaking after the signing, Saddi said Lebanon is moving gradually to shift its energy sector from fuel oil to natural gas, describing gas as cheaper, less harmful to the environment, and a way to avoid the complications associated with fuel oil tenders.

      Pipeline rehabilitation and timelines

      Saddi said Lebanon has received a technical report from a committee that visited the country at Jordan’s initiative to assess the condition of the pipeline running from Aqaba through Syria, as well as a northern line supplying the Deir Ammar power plant. The report outlines the work required on the Lebanese section of the pipeline, its cost, and the expected timeframe.

      “The cost is not high, and the rehabilitation would take approximately three to four months,” Saddi said, noting that similar assessments are underway on the Syrian side. He added that Lebanon will approach donor institutions to help finance the rehabilitation of the pipeline from Deir Ammar to the Syrian border.

      He stressed the importance of diversifying gas supply sources, pointing to parallel efforts with Gulf states and the International Finance Corporation to build new gas-fired plants, establish a regasification terminal, and secure long-term gas supplies.

      Minister Saddi said the agreement with Egypt could later pave the way for a contract to purchase Egyptian natural gas, initially to supply the Deir Ammar plant, once pipeline rehabilitation is completed and technical requirements on the Syrian side are clarified. He also noted that sanctions under the Caesar Act are no longer an obstacle and that Lebanon is awaiting a final technical report from Syria.

      Presidential backing and Egyptian support

      President Joseph Aoun welcomed the agreement during a meeting with Badawi at Baabda Palace, expressing Lebanon’s gratitude for Egypt’s support under the direction of President Abdel Fattah el-Sisi. Aoun said the memorandum is a “practical and essential step” that will help increase electricity production and reduce power rationing.

      Badawi told Aoun that Egypt’s engagement reflects President Sisi’s directives and follows the recent visit of Egyptian Prime Minister Mostafa Madbouly to Beirut. He said gas cooperation would build on strong bilateral ties, with Egypt offering expertise across the gas value chain, including exploration, production, transport, and distribution to homes, industry, and power plants. He also announced the formation of joint working groups between the two ministries to coordinate efforts and develop necessary infrastructure.

      Parliamentary talks

      Separately, Speaker of Parliament Nabih Berri met Badawi in Ain Al-Tineh, with discussions covering regional developments, bilateral relations, and the gas agreement aimed at supplying Lebanon with natural gas for electricity generation.

      The signing ceremony and meetings were attended by senior Lebanese and Egyptian officials, including Egypt’s ambassador to Lebanon and executives from the Egyptian Natural Gas Holding Company.

      Source: Al-Manar Website