Lebanon: Lebanon and Egypt on Monday signed a memorandum of understanding at the Grand Serail, under the patronage of Prime Minister Dr. Nawaf Salam, to meet Lebanon's needs for natural gas designated for electricity generation. The memorandum was signed on behalf of Lebanon by Minister of Energy Joe Saddi, and on behalf of Egypt by Minister of Petroleum and Mineral Resources Engineer Karim Badawi, in the presence of Egypt's Ambassador to Lebanon Alaa Moussa, Executive Managing Director of the Egyptian Natural Gas Holding Company (EGAS) Engineer Mahmoud Abdel Hamid, Head of the Central Legal Affairs Administration at Egypt's Ministry of Petroleum and Mineral Resources Mohamed Al-Bagouri, Minister Saddi's adviser Attorney Boutros Hadchiti, and Petroleum Sector Authority member Engineer Wissam Al-Dahabi.

According to National News Agency - Lebanon, following the signature, Minister Saddi said Lebanon has decided to gradually shift the energy sector from fuel oil to natural gas, noting that natural gas is less costly, less harmful to the environment, and avoids the complexities of fuel-oil tenders. He said Lebanon has received a report from a technical committee that visited the country at Jordan's initiative to assess the condition of the pipeline extending from Aqaba through Syria and supplying the Deir Ammar power plant via a northern pipeline. The assessment detailed the works required on the Lebanese section, their cost, and the timeframe, estimated at approximately three to four months, at a relatively limited cost.

Saddi noted that similar assessments are under way on the Syrian side, and that Lebanon will contact donor agencies to explore funding options for rehabilitating the pipeline from Deir Ammar to the Syrian border. Moreover, the Minister stressed Lebanon's insistence on diversifying natural gas sources, whether through cooperation with Gulf countries, through the IFC to establish new gas-fired power plants, or through the creation of a regasification terminal. In this context, Lebanon signed today's MoU with Egypt to import natural gas when available, adding that contractual and pricing details will be addressed in the coming weeks.

Asked about the outcome of cooperation with Egypt, Saddi said it could eventually lead to contracts to purchase natural gas to supply the Deir Ammar plant in a first phase, noting that this will take time due to the need to rehabilitate pipelines and coordinate with the Syrian side, as well as negotiations with Egypt, Jordan, and Syria. He confirmed that the agreement constitutes an initial step. Responding to a question, Saddi said the Caesar Act is no longer in effect, and that the technical report received indicates the need to rehabilitate the pipeline within Lebanese territory, adding that Lebanon is awaiting the corresponding report from the Syrian side to determine the required rehabilitation works there.