BEIRUT, Lebanon: Lebanon energy minister Walid Fayad has begun two projects to aid the flow of natural gas from Egypt, aimed at improving electricity production and helping increase the country’s oil reserves.
The revival of the Arab Gas Pipeline, which has been out of service since before Syria’s 10-year conflict began in 2011, seeks to deliver Egyptian gas to Lebanon, as the country is suffering from a crippling electricity crisis.
Fayad said Egypt’s Technical Gas Services will begin renovation work on the pipeline inside Lebanon within days, and work should be completed in some two months.
Egypt has agreed to supply Lebanon with natural gas through Jordan and Syria, and Syrian experts have finished work inside the war-torn country.
Despite the Syrian government being under western sanctions, the U.S. has supported the resumption of natural gas flowing from Egypt to Lebanon via Syria.
While touring an oil facility, Fayad told the Associated Press that U.S. officials who visited Lebanon said the contract to bring gas from Egypt will not be targeted by sanctions because “no cash is going from any side to Syria,” adding that Egyptian officials are in contact with their American counterparts to ensure the contract does not violate sanctions.
Fayad said some 650 million cubic meters of gas will be brought annually to Lebanon through the pipeline at the Deir Ammar power station in the north, which will lead to the production of 450 megawatts of electricity.
The cost will be about 7.5 to 8 cents per kilowatt hour, “which is cheaper than any production costs we have,” he said.
In 2019, Lebanon signed an agreement with Russia’s largest oil company, Rosneft, to upgrade and operate storage installations in Tripoli.
Fayad said Roseneft will restore and build tanks that can fit 150,000 cubic meters of storage, which at a later stage can be upgraded to 250,000 cubic meters and eventually reach 400,000 cubic meters.
The project is expected to take about 18 months, he said.
