ISTANBUL
Lebanon and Egypt signed a memorandum of understanding on Monday aimed at meeting Lebanon’s natural gas needs for electricity generation, as Beirut seeks to gradually shift its energy sector away from fuel oil.
Lebanese Energy Minister Joe Saddy signed on behalf of Beirut, while Egypt was represented by Petroleum and Mineral Resources Minister Karim Badawi, alongside officials from both countries, the state news agency NNA reported.
Saddy stressed that Lebanon is seeking to diversify its sources of natural gas, noting parallel efforts with Gulf countries and the International Finance Corp. to establish new gas-powered facilities and infrastructure.
Under the MoU, he said, Lebanon would be able to import natural gas from Egypt when it becomes available.
“All contractual and pricing details will be worked out in the coming weeks,” he said.
Asked about the impact of cooperation with Egypt, Saddy said it could eventually lead to a contract to supply natural gas to the Deir Ammar plant in northern Lebanon as an initial step.
He noted that this would require pipeline rehabilitation, coordination with Syria and negotiations not only with Egypt but also with Jordan and Damascus.
He described the MoU as “a preliminary step” toward restoring gas supplies for electricity generation in Lebanon.
The Egyptian minister, for his part, said Cairo would provide full support to Lebanon in exploring, extracting, transporting and distributing natural gas, following talks with Lebanese President Joseph Aoun at the presidential palace east of Beirut.
Badawi said Egypt’s engagement reflects directives from President Abdel Fattah al-Sisi and follows a recent visit to Beirut by Egypt’s prime minister. He said cooperation in gas would be a tangible outcome of strong bilateral relations.
“Lebanon can benefit from Egyptian expertise in gas field exploration and extraction, transport and distribution to industry, homes and power plants,” Badawi said in his comments cited by a Lebanese presidency statement.
Joint working groups would be formed between the two countries’ energy ministries to coordinate efforts, he added, noting that Egypt is also prepared to help provide necessary infrastructure.
President Aoun said the MoU represents a practical and essential step that would allow Lebanon to increase electricity production and ease current rationing, according to the presidency.
Under the agreement, gas would be delivered by pipeline to the Deir Ammar plant, potentially adding about 450 megawatts to the grid – the equivalent of roughly four additional hours of electricity per day, according to experts.
Lebanon’s state-run electricity provider produces only a few hours of power per day, forcing many households and businesses to rely on expensive private generators. The country has struggled for decades to secure stable electricity supplies due to aging power plants, weak transmission networks and chronic underinvestment, resulting in daily power cuts that have become a defining feature of Lebanon’s economic and social crisis.