(MENAFN) Lebanon, Syria, and Egypt have decided to ship 650 million cubic meters of natural gas per year from Egypt to Lebanon via Syria, as part of Lebanon's attempts to improve energy generating capacity and minimize blackouts, which have plagued the country's economy in recent years.
The agreement, signed on Tuesday at the Lebanese energy ministry in Beirut, calls for gas to be pumped to Lebanon's northern Deir Ammar power plant, where it may contribute 450 megawatts, or around four hours of electricity per day, to the system.
Deir Ammar is one of numerous facilities in Lebanon that can run on both gas and diesel, but only utilize the latter because the gas pipeline has not yet been completed.
According to Lebanon's interim energy minister Walid Fayad, the arrangement still requires the approval of the World Bank, which has provided money, and the United States for compliance with its Syria sanctions regime.
Fayad made the announcement with Egypt and Syria representatives, as well as Magdy Galal, head of the state-owned Egyptian Natural Gas Holding.
They did not provide the financial details.
Following his meeting with Galal and Egyptian ambassador Yaser Alawi, Lebanon's interim prime minister Najib Mikati's office published a statement in which Alawi stated that the price provided was "30% less than global market prices."
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.