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Lebanon signs gas deal with Egypt and Syria to supply a 450 MW power plant

22 Jun 2022

Lebanon has signed a deal to import 650 mcm/year of natural gas from Egypt via Syria through the Arab gas pipeline. The imported gas will supply the 450 MW Deir Ammar gas-fired plant in northern Lebanon. The agreement is yet to be approved by the World Bank, which has pledged financing, and by the United States for compliance with its Syria sanctions regime. 

The country has not imported natural gas since 2010. The Gasyle pipeline, a 32 km pipeline between the Dein Ammar power plant and the Syrian border with a capacity of 1.1 bcm/year, was commissioned in 2005. The project was connected in 2009 to the Arab Gas Pipeline (10 bcm/year) linking Egypt to Israel, Jordan, Syria, Lebanon, and Turkey.

Lebanon's installed power generating capacity reached 3.7 GW with 68% of oil and 23% of natural gas (end of 2021). According to the World Bank, the percentage of electricity demand unmet by the state-owned power utility EDL has increased from 22% in 2008 to 37% in 2018, leading to frequent power outages and forcing the Lebanese to rely on diesel-fired generators, which are increasingly unavailable due to oil supply problems.

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