Lebanon signs memorandum with Egypt to purchase natural gas

Lebanon has signed a memorandum of understanding with Egypt to purchase natural gas, a move aimed at addressing the country’s chronic electricity shortages, the Lebanese prime minister's office said.

The agreement was signed under the patronage of Prime Minister Nawaf Salam and is intended to meet Lebanon's needs for natural gas used in electricity generation. The memorandum was signed on behalf of Lebanon by Energy Minister Joe Saddi and by Egyptian Minister of Petroleum and Mineral Resources Karim Badawi for Egypt.

Speaking after the signing, Saddi said Lebanon’s energy strategy is based on transitioning to the use of natural gas and diversifying its supply sources, whether overland or by sea.

He said the government aims to gradually shift the energy sector away from fuel oil toward natural gas, noting that gas is less costly and more environmentally friendly.

Saddi added that the memorandum is designed to enable Lebanon to import natural gas from Egypt when supplies are available, stressing that technical and commercial details, including pricing and contractual arrangements, will be addressed in the coming weeks.

He noted that the process will take time, as existing pipelines will require rehabilitation before gas deliveries can begin.