Egypt and Lebanon Sign Memorandum of Understanding on Natural Gas Supply

Wedoany.com Report-Dec.30, Officials from Egypt and Lebanon signed a memorandum of understanding in Beirut on December 29, aimed at facilitating the supply of Egyptian natural gas to Lebanon's Deir Ammar power plant. The memorandum was signed by Egyptian Minister of Petroleum and Mineral Resources Karim Badawi and Lebanese Minister of Energy and Water Joe Sadi, witnessed by Lebanese Prime Minister Nawaf Salam. A statement from Salam's office indicated that this memorandum of understanding aims to "meet Lebanon's natural gas needs for electricity generation."

Egyptian officials stated that the agreement helps solidify Egypt's position as a regional hub for natural gas trade. The Egyptian government has previously expressed its desire to play a role in promoting regional energy security by increasing natural gas production and exports. Lebanese Minister of Energy and Water Joe Sadi said this agreement will allow Lebanon to import natural gas from Egypt when supplies are abundant. He also mentioned: "Lebanon's strategy is, first, to transition to using natural gas, and second, to diversify its sources of natural gas." Sadi further explained that the related pipeline repair work will require some time to complete.

In April of this year, Lebanon signed a $250 million agreement with the World Bank to support the modernization of its electricity system. Prior to this, Egypt had obtained approval from Israel in early December to import natural gas from Israel's Leviathan gas field to meet its domestic needs and for re-export.