Jordan to host meeting for Lebanon gas supplies

Market: Natural gas
05/09/21

Jordan will host a meeting with some of its neighbours on 8 September to find a way to alleviate Lebanon's ongoing electricity shortages by supplying the country with Egyptian gas, state-run Petra news agency reported today.

Jordanian energy and mineral resources minister Hala Zawati has invited her Syrian, Lebanese and Egyptian counterparts to Amman to discuss ways to deliver Egyptian gas to Lebanon via Jordan and Syria. It would follow a meeting between Lebanese and Syrian delegations in Damascus yesterday in which Syria said it "welcomed" a request by the Lebanese to import gas from Egypt and electricity from Jordan through its territory.

The discussions likely revolve around the 10bn m³/yr Arab Gas Pipeline (AGP), which transports gas from Egypt to Jordan, Syria and Lebanon. Lebanon had previously taken gas from Egypt via the pipeline in 2009 and 2010, but supplies ended soon after as Egypt's gas production dwindled. And although Egypt restarted exporting gas through the pipeline in 2018, these volumes have overwhelmingly been going to Jordan.

According to the World Bank, Egypt has previously indicated its willingness to supply gas to Lebanon. But, among other things, this would have to address the geopolitical complexities of the Syrian civil war. Transit through Syria could be difficult, and with Damascus under US oil sectoral sanctions, that could complicate relations for all involved.

Lebanon has been experiencing an acute power shortage that has resulted in severe rolling blackouts. Last week it awarded its first ever tender to swap 84,000t (542,000 bl) of Iraqi fuel oil with 30,000t of a specific fuel oil grade and 33,000t (246,000 bl) of gasoil to Dubai's state-owned Enoc.

This tender is part of a deal that allows Lebanon's government to buy and resell 1mn t of heavy fuel oil from Iraq through monthly spot tenders — in cargoes of 75,000-85,000t — for one year on behalf of Lebanon's main power provider Electricite du Liban (EDL). The deal, which was signed in late-July, should cover around one third of EDL's fuel needs, and therefore tie the country over for around four months.

By Adal Mirza

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