February meeting to coordinate importing energy from Egypt and Jordan

A meeting comprising Lebanese, Syrian, Egyptian and Jordanian officials will be held in February with the aim of facilitating the exportation of electricity and gas from Jordan and Egypt to Lebanon via Syria, a Lebanese ministerial source told Asharq Al-Awsat newspaper.

The meeting will review previous agreements signed during the era of the Bashar al-Assad regime, as part of the Lebanese authorities' steps to improve electricity supply in Lebanon.

The project to import electricity from Jordan and natural gas from Egypt to fuel Lebanese power plants has long been stalled due to "Caesar Act" sanctions previously imposed on the Syrian regime by the United States.

Following the lifting of sanctions after the regime's fall, the electricity file has returned to the forefront of Lebanon's political and economic scene. This time, it is moving along two tracks: a government approach promising a long-term recovery path, and regional efforts expected to be practically tested in the upcoming quadripartite meeting in February.

A ministerial source monitoring the energy file told Asharq al-Awsat that the meeting "is part of the follow-up coordination related to the gas and electricity importation file."

The source explained that "attendees will be briefed on the report of the technical delegation that visited Lebanon and determined the cost and timeframe required to rehabilitate the Lebanese section of the Arab Gas Pipeline, as well as the technical report regarding the Syrian side."

Recent visits to Beirut by Egyptian Prime Minister Mostafa Madbouly and Jordanian Prime Minister Jafar Hassan have revived the option of importing electricity and gas within a regional interconnection framework. The Jordanian proposal is based on supplying Lebanon with 150 to 250 megawatts during peak hours, while Cairo has re-offered to supply Lebanon with natural gas to operate the Deir Amar plant instead of fuel oil via the Arab Gas Pipeline.

However, despite their political significance, these understandings remain subject to technical and financial conditions that have yet to be completed. This has kept implementation deferred, linking any practical progress to the outcomes of next month's coordination.

Regarding gas, the plan does not involve building new pipelines or sea shipments; rather, it focuses on reactivating the existing Arab Gas Pipeline, with the primary supply to Lebanon coming directly from Egypt. Implementation remains tied to the readiness of infrastructure within Syria and Lebanon.

In parallel with these preparations, Lebanese Minister of Energy and Water, Joe Saddi, defined the general framework of the government’s approach, stressing that "work is underway to recover the electricity sector according to a specific roadmap. This is essential and unavoidable no matter how long it takes; it is important to us that investors feel the sector is effective."

According to Saddi, the plan is based on an integrated reform path starting with increasing traditional production capacity by building two new plants in Deir Amar and Zahrani, each with a capacity of approximately 825 megawatts and an estimated cost of $2 billion. This runs parallel to opening investment channels with Gulf countries and enlisting the International Finance Corporation (IFC) to secure the necessary financial guarantees given the state's financial crisis.

At a press conference, he explained: "The plan is accompanied by a push for investment in renewable energy by activating frozen solar farm licenses and launching projects exceeding 100 megawatts. Additionally, a portion of the World Bank loan will be allocated to produce up to 150 megawatts of solar energy and to rehabilitate hydroelectric stations on the Litani River with international funding."

Saddi emphasized that gradually transitioning the sector to natural gas is a cornerstone of the approach, while ensuring "the diversification of import sources so as not to link Lebanon to a single source, whether by activating the Arab Gas Pipeline or preparing to establish a Floating Storage Regasification Unit (FSRU) to import gas by sea."

He also proposed an electrical interconnection with Cyprus, revealing that "the World Bank will fund the economic feasibility study for the project as part of a long-term vision to integrate Lebanon into a broader Eastern Mediterranean electricity market."

Internally, Saddi admitted that the state of the grid is one of the biggest challenges, following long-term neglect that requires investments of no less than $500 million for rehabilitation and modernization. Work has already begun with the Arab Fund to secure part of the funding.

He revealed that approximately 30% of electricity is stolen, at an estimated cost of $200 million annually, confirming "the start of legal action against major violators in coordination with the judiciary, in addition to a commitment to pay a large portion of state institutions' bills to EDL."

Currently, EDL provides only a few hours of electricity daily, with near-total reliance on private generators and solar energy. Sector sources confirm that existing plants, even if operated at maximum capacity, cannot provide more than 10 hours of power, underscoring the urgent need to build new gas-fired plants to increase production.