Can Arab Gas Pipeline plan enable Lebanon to keep the lights on?

Protesters gather in front of the Lebanese electricity company headquarters in Beirut, where a crippling cocktail of crises is threatening to plunge the cash-strapped country into total darkness. (AP)
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Updated 12 October 2021
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Can Arab Gas Pipeline plan enable Lebanon to keep the lights on?

  • On Sunday the Lebanese state electricity network collapsed completely for the second time this month
  • Arab Gas Pipeline deal struck with Egypt, Jordan and Syria offers glimmer of hope amid the darkness

DUBAI: Lebanon was plunged into a total blackout this week after two of its main power plants shut down before the army stepped in to supply fuel from its stocks. It was the latest in a series of disasters to strike the country’s public-services infrastructure in general, and the power sector in particular, in recent times.

Energy production reportedly dropped to less than 200 MW while the country requires around 3,000 MW. The blackout occurred less than a month after Electricite Du Liban, the state electricity corporation, warned that Lebanon was heading toward a “total and complete” power outage unless more fuel supplies were secured.

The collapse of electricity production also came just weeks after the energy ministers of Egypt, Jordan, Lebanon, and Syria agreed on a road map for the delivery of Egyptian natural gas to Lebanon, which, if successfully implemented, could provide the country with up to 17 hours of electricity per day.

Millions of Lebanese currently endure power outages of up to 22 hours per day as their leaders struggle to secure the foreign capital needed to import fuel. Operators of private backup generators are being pushed to their limits as costs of diesel and repairs have skyrocketed.

“We hope that the import of gas will happen as soon as possible and the cooperation between the countries is considered natural because it is not the first time that cooperation between us has taken place,” Raymond Ghajar, Lebanon’s former energy minister, said last month.

Earlier this month, after a meeting with his Egyptian counterpart Tarek El-Molla in Cairo, Ghajar said Egypt had offered extra quantities of gas. Molla hinted that a deal could be finalized “within the coming weeks.”

The plan is part of a US-coordinated effort to deliver natural gas via the Arab Gas Pipeline, which originates near Arish on Egypt’s Sinai Peninsula and extends through Jordan, Syria and into Lebanon.




Lebanon’s former Energy Minister Raymond Ghajar, Jordan’s Energy Minister Hala Zawati, Syria’s Minister of Oil and Mineral Resources Bassam Tohme and Egypt’s Minister of Oil and Mineral Resources Tarek El Mol. (Reuters)

“This is a good step in the right direction but more needs to be done,” Laury Hayatyan, MENA director at the New York-based Natural Resource Governance Institute, told Arab News, citing the need for forming technical committees from each country to monitor the pipeline’s condition.

According to Ghajar, Lebanon is in talks with the World Bank to secure financing for the import of Egyptian natural gas, which will provide the country with 450 megawatts of power.

“To produce 450 MW, Egypt has to provide Lebanon with around 1 billion cubic meters or 670,000 tons of gas,” Marc Ayoub, an energy policy researcher at the American University of Beirut’s Issam Fares Institute, told Arab News. “Egypt can probably do that given its large gas discoveries in recent years.”

The total energy production and the amount of gas needed will also depend on the efficiency of Lebanon’s power plants, he said.

Lebanon currently has a maximum power generating capacity of 2,000 MW, far less than the 2017 summer peak demand of 3,400 MW. The power generating-capacity figure is misleading, however; some 50 percent of the output is wasted due to grid inefficiencies.

The biggest challenge facing the Arab Gas Pipeline is something else, however: The state of the industrial infrastructure of each country.

Infrastructure in Syria, a country devastated by a decade-long civil war, is in urgent need of repair so that gas can reach Lebanon. Egyptian gas stopped flowing through Syria in 2010.

“They said that gas will be transported as soon as possible,” Hayatyan said. “But what exactly does this mean and how much time will it actually take to set up everything?”

Despite the US sanctions on Syria under the Caesar Syria Civilian Protection Act of 2019, which prohibits financial transactions with the country’s institutions, Washington seems to have given its tacit approval to the pipeline proposal.
 




Lebanon’s capital, Beirut, was pushed into a total blackout in April after its main power stations went offline due to a lack of fuel. (AFP)

“There were signals from the US ambassador to Lebanon that initiated these proceedings, but we must wait for an official confirmation from the US Treasury,” Hayatyan said.

However, the exact payment terms must be agreed on, given that each point of entry charges a transit fee for gas to pass through. “For instance, before the civil war in Syria, they used to take part of the gas transported instead of cash payments,” she said.

In the past, the gas was transported to Lebanon’s Deir Ammar power plant. However, if the arrangement is to be revived, the plant will need to be refitted, having been run on liquid fuel for many years.

If the deal eventually goes ahead, it will not be the first time Lebanon has imported gas from abroad. “We used to import gas back in 2004 when the Arab Gas Pipeline was completed,” Roudi Baroudi, an oil and gas expert, told Arab News.

“If Lebanon had fully benefited from that partnership and the Arab pipeline, most of its electricity problems would have been resolved.”

Lebanon’s government says net transfers to state power firm EDL amount to between $1 billion and $1.5 billion per year, most of which is spent on fuel oil. In 2016, the International Monetary Fund said the accumulated cost of subsidizing EDL amounted to roughly 40 percent of Lebanon’s entire national debt, which itself exceeded 150 percent of its GDP.

Had Lebanon made the most of its pipeline partnership, the state’s treasury could have saved something in the region of $5 billion over 18 years. “That is if we assume that the price of a barrel of oil ranges between $50 and $60,” Baroudi said.

Egypt, Jordan, and Syria might be willing to extend credit lines to Lebanon, at least in the short term, Baroudi said, adding that “the most important thing now is to open diplomatic channels with all these countries.”

To increase the productivity of the new pipeline supply, Baroudi said it would make sense for Lebanon to convert the rest of its power plants to run on gas. “The Zahrani, Jiyeh, and Zouk plants should be converted and connected to the grid,” he said.
 





“We are now counting on the international community to fund vital projects in the public and private sectors to revive economic life,” Lebanese President Michel Aoun said. 

In the meantime, Lebanon is looking to purchase excess capacity from Jordan, which could supply about three hours of electricity per day. “Jordan has been producing an excess of electricity in recent years after embracing renewables and is looking to sell that to neighboring countries,” Hayatyan said.

Lebanon also struck a deal with Iraq in February to swap one million tons of Iraqi oil for derivatives that match its own power plants’ specifications.

When precisely the Lebanese people will see any benefits is unclear. Grappling with the worst financial crisis in its history, Lebanon has gradually increased fuel prices in recent months because the cash-strapped central bank can no longer afford to fund fuel imports.

The latest price hike, expected to be followed by further increases in the coming weeks, is widely seen as a prelude to a final and definite lifting of fuel subsidies by the government.

Acute fuel shortages have brought the small Mediterranean country to the brink of humanitarian disaster, with hospitals across the country struggling to provide power to ventilators and other life-sustaining equipment.

To fill a medium-sized vehicle’s tank, most Lebanese have to pay close to the monthly minimum wage of 675,000 Lebanese pounds, at a time when nearly 80 percent of the population is estimated to live below the poverty line.


Pope Francis set to visit Turkiye for Council of Nicaea anniversary in 2025

Updated 8 sec ago
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Pope Francis set to visit Turkiye for Council of Nicaea anniversary in 2025

  • The pope had already expressed in June the desire to go on the trip despite international travel becoming increasingly difficult for him
ROME: Pope Francis said on Thursday he planned to visit Turkiye’s Iznik next year for the anniversary of the first council of the Christian Church, Italian news agency ANSA reported.
The early centuries of Christianity were marked by debate about how Jesus could be both God and man, and the Church decided on the issue at the First Council of Nicaea in 325.
“During the Holy Year, we will also have the opportunity to celebrate the 1700th anniversary of the first great Ecumenical Council, that of Nicaea. I plan to go there,” the pontiff was quoted as saying at a theological committee event.
The city, now known as Iznik, is in western Anatolia, some 150km southeast of Istanbul.
The pope had already expressed in June the desire to go on the trip and the spiritual head of the world’s Orthodox Christians, Ecumenical Patriarch Bartholomew, had said the two men would celebrate the important recurrence together but no official confirmation had been made yet.
Despite international travel becoming increasingly difficult for him because of health issues, Francis, who will turn 88 on Dec. 17, completed in September a 12-day tour across Asia, the longest of his 11-year papacy.

Israel wants India’s Adani Group to continue investments after US bribery allegations

Updated 44 min 37 sec ago
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Israel wants India’s Adani Group to continue investments after US bribery allegations

  • Adani Group holds a 70 percent stake in Haifa port in northern Israel and is involved in multiple other projects with firms in the country
  • US last week accused Adani Group of being part of scheme to pay bribes of $265 million to secure contracts, misleading US investors 

HYDERABAD, India: Israel wants India’s Adani Group to continue to invest in the country, Israel’s envoy to India said on Thursday, affirming the nation’s support for the ports-to-media conglomerate whose billionaire founder is facing bribery allegations in the United States.

“We wish Adani and all Indian companies continue to invest in Israel,” Ambassador Reuven Azar said in an interview with Reuters, adding that allegations by US authorities were “not something that’s problematic” from Israel’s point of view.

The Adani Group holds a 70% stake in Haifa port in northern Israel and is involved in multiple other projects with firms in the country, including to produce military drones and plans for the manufacture of commercial semiconductors.

US authorities last week accused Gautam Adani, his nephew, and Adani Green’s managing director of being part of a scheme to pay bribes of $265 million to secure Indian power supply contracts and misleading US investors during fund raising efforts there.

Adani Group has denied all the accusations, calling them “baseless.”

Still, shares and bonds of Adani companies were hammered last week and some partners began to review joint projects.

“I am sure Adani Group will resolve its problems,” Azar said on the sidelines of an event in the southern city of Hyderabad.


Lebanon to hold parliament session on Jan. 9 to elect president

Updated 51 min 13 sec ago
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Lebanon to hold parliament session on Jan. 9 to elect president

  • State news agency: ‘Speaker Nabih Berri called a parliament session to elect a president of the republic on January 9’

BEIRUT: Lebanon’s parliament will hold a session in January to elect a new president, official media reported on Thursday, a day after an Israel-Hezbollah ceasefire began and following more than two years of presidential vacuum.
“Speaker Nabih Berri called a parliament session to elect a president of the republic on January 9,” the official National News Agency reported.


Israel says ceasefire with Hezbollah in Lebanon violated

Updated 13 min 37 sec ago
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Israel says ceasefire with Hezbollah in Lebanon violated

  • Lebanese security sources and state media report tank fire struck Markaba, Wazzani and Kfarchouba
  • Lebanon’s military deployed troops and tanks across the country’s south on Thursday

BEIRUT: Israel’s military announced on Thursday that it had detected the presence of suspects in several areas of southern Lebanon, calling it a violation of the ceasefire with Hezbollah.

Earlier on Thursday Israeli tank fire targeted three towns along Lebanon’s southeastern border with Israel, according to Lebanese security sources and state media. The strikes came a day after the ceasefire, which prohibits “offensive military operations,” had officially taken effect.

The tank fire hit Markaba, Wazzani, and Kfarchouba, all located within two kilometers of the Blue Line that marks the border between Lebanon and Israel. One security source reported that two people were wounded in Markaba.

A ceasefire between Israel and Lebanese armed group Hezbollah took effect on Wednesday under a deal brokered by the US and France, intended to allow people in both countries to start returning to homes in border areas shattered by 14 months of fighting.

But managing the returns have been complicated. Israeli troops remain stationed within Lebanese territory in towns along the border, and on Thursday morning the Israeli military urged residents of towns along the border strip not to return yet for their own safety.

The three towns hit on Thursday morning lie within that strip.

There was no immediate comment on the tank rounds from Hezbollah or Israel, who had been fighting for over a year in parallel with the Gaza war.

Lebanon’s military deployed troops and tanks across the country’s south on Thursday as a ceasefire in the Israel-Hezbollah war largely held for a second day.

A Lebanese army source said its forces were “conducting patrols and setting up checkpoints” south of the Litani River without advancing into areas where Israeli forces were still present.

In the border village of Qlaaya, residents threw rice and flowers to celebrate the arrival of Lebanese soldiers.

“We only want the Lebanese army,” chanted the residents of the Christian-majority village, as they clapped and cheered for the troops and waved the Lebanese red, white and green flag.

Since the ceasefire took effect on Wednesday, tens of thousands of Lebanese who fled their homes have headed back to their towns and villages, only to find scenes of devastation.

“Despite all the destruction and the sorrow, we are happy to be back,” said Umm Mohammed Bzeih, a widow who fled with her four children from the southern village of Zibqin two months ago.

“I feel as if our souls have returned,” she said, visibly exhausted as she swept up the shattered glass and pieces of stones that carpeted the floor.

Hezbollah lawmaker Hassan Fadlallah said his group was cooperating on the army’s deployment in the south.

There is “full cooperation” with the Lebanese state in strengthening the army’s deployment, he said, adding the group had “no visible weapons or bases” but “nobody can make residents leave their villages.”

The agreement, a rare diplomatic feat in a region racked by conflict, ended the deadliest confrontation between Israel and the Iran-backed militant group in years. But Israel is still fighting its other arch foe, the Palestinian militant group Hamas, in the Gaza Strip.

Under the ceasefire terms, Israeli forces can take up to 60 days to withdraw from southern Lebanon. Israeli Prime Minister Benjamin Netanyahu said he had instructed the military not to allow residents back to villages near the border.

Lebanon’s speaker of parliament Nabih Berri, the top interlocutor for Lebanon in negotiating the deal, had said on Wednesday that residents could return home.


Syria war monitor says more than 130 dead in army-militant clashes in north

Updated 28 November 2024
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Syria war monitor says more than 130 dead in army-militant clashes in north

  • Clashes followed “an operation launched by Hayat Tahrir Al-Sham,” the Syrian Observatory for Human Rights said
  • The air forces of both Syria and its ally Russia struck the attacking militants

BEIRUT: A monitor of Syria’s war said on Thursday that more than 130 combatants had been killed in clashes between the army and militant groups in the country’s north, as the government also reported fierce fighting.

The Britain-based Syrian Observatory for Human Rights said the toll in the clashes which began a day earlier after the militants launched an attack “has risen to 132, including 65 fighters” from Hayat Tahrir Al-Sham, 18 from allied factions “and 49 members of the regime forces.”