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)
Short Url
Updated 12 October 2021
Follow

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.


Algeria facing growing calls to release French-Algerian author Boualem Sansal

Updated 5 sec ago
Follow

Algeria facing growing calls to release French-Algerian author Boualem Sansal

“The detention without serious grounds of a writer of French nationality is unacceptable,” France’s Foreign Minister Jean-Noël Barrot said
The European Parliament discussed Algeria’s repression of freedom of speech on Wednesday and called for “his immediate and unconditional release”

PARIS: Politicians, writers and activists have called for the release of French-Algerian writer Boualem Sansal, whose arrest in Algeria is seen as the latest instance of the stifling of creative expression in the military-dominated North African country.
The 75-year-old author, who is an outspoken critic of Islamism and the Algerian regime, has not been heard from by friends, family or his French publisher since leaving Paris for Algiers earlier this month. He has not been seen near his home in his small town, Boumerdes, his neighbors told The Associated Press.
“The detention without serious grounds of a writer of French nationality is unacceptable,” France’s Foreign Minister Jean-Noël Barrot said on Wednesday.
He added Sansal’s work “does honor to both his countries and to the values we cherish.”
The European Parliament discussed Algeria’s repression of freedom of speech on Wednesday and called for “his immediate and unconditional release.”
Algerian authorities have not publicly announced charges against Sansal, but the APS state news service said he was arrested at the airport.
Though no longer censored, Sansal’s novels have in the past faced bans in Algeria. A professed admirer of French culture, his writings on Islam’s role in society, authoritarianism, freedom of expression and the civil war that ravaged Algeria throughout the 1990s have won him fans across the ideological spectrum in France, from far-right leader Marine Le Pen to President Emmanuel Macron, who attended his French naturalization ceremony in 2023.
But his work has provoked ire in Algeria, from both authorities and Islamists, who have issued death threats against him in the 1990s and afterward.
Though few garner such international attention, Sansal is among a long list of political prisoners incarcerated in Algeria, where the hopes of a protest movement that led to the ouster of the country’s then-82 year old president have been crushed under President Abdelmadjid Tebboune.
Human rights groups have decried the ongoing repression facing journalists, activists and writers. Amnesty International in September called it a “brutal crackdown on human rights including the rights to freedom of expression, peaceful assembly and association.”
Algerian authorities have in recent months disrupted a book fair in Bejaia and excluded prominent authors from the country’s largest book fair in Algeria has in recent months, including this year’s Goncourt Prize winner Kamel Daoud,
“This tragic news reflects an alarming reality in Algeria, where freedom of expression is no more than a memory in the face of repression, imprisonment and the surveillance of the entire society,” French-Algerian author Kamel Daoud wrote in an editorial signed by more than a dozen authors in Le Point this week.
Sansal has been a polarizing figure in Algeria for holding some pro-Israel views and for likening political Islam to Nazism and totalitarianism in his novels, including “The Oath of the Barbarians” and “2084: The End of the World.”
Despite the controversial subject matter, Sansal had never faced detention. His arrest comes as relations between France and Algeria face newfound strains. France in July backed Morocco’s sovereignty over the disputed Western Sahara, angering Algeria, which has long backed the independence Polisario Front and pushed for a referendum to determine the future of the coastal northwest African territory.
“A regime that thinks it has to stop its writers, whatever they think, is certainly a weak regime,” French-Algerian academic Ali Bensaad wrote in a statement posted on Facebook.

Iranian Revolutionary Guards officer killed in Syria, SNN reports

Updated 20 min 31 sec ago
Follow

Iranian Revolutionary Guards officer killed in Syria, SNN reports

DUBAI: Iranian Revolutionary Guards Brig. Gen. Kioumars Pourhashemi was killed in the Syrian province of Aleppo by “terrorists” linked to Israel, Iran’s SNN news agency reported on Thursday without giving further details.
Rebels led by Islamist militant group Hayat Tahrir Al-Sham on Wednesday launched an incursion into a dozen towns and villages in northwest Aleppo province controlled by Syrian President Bashar Assad.


Israel-Hezbollah ceasefire unlikely to hold: UK ex-spy chief

Updated 27 min 54 sec ago
Follow

Israel-Hezbollah ceasefire unlikely to hold: UK ex-spy chief

  • Richard Dearlove: Agreement suits both parties in ‘short to medium term’
  • Deal leaves Iran ‘exposed’ as its Lebanese ally is temporarily incapacitated

LONDON: The ceasefire deal struck this week between Israel and Hezbollah is unlikely to hold, a former head of MI6 has warned.

Richard Dearlove, who headed the British intelligence service from 1999 to 2004, told Sky News that the deal, which came into effect on Wednesday, is a “retreaded agreement from 2006.”

That initial deal was designed to keep Hezbollah away from the border region with Israel, overseen by the Lebanese military and the UN, but in effect it “did absolutely nothing,” he said.

This week’s deal suits both Israel and Hezbollah “in the short to medium term,” Dearlove said, adding: “The Israelis must know how much of the infrastructure of Hezbollah they’ve taken down … They haven’t taken it down completely, but maybe the Lebanese state can reassert some of its authority as the government of Lebanon and keep Hezbollah to an extent under control. We just have to wait and see what happens.”

He said the ceasefire deal will be a blow to Hezbollah’s backer Iran, leaving the latter “exposed” with one of its allies temporarily incapacitated.

But he warned that this could escalate into “direct” confrontation between Israel and Iran were the latter to launch another ballistic missile attack.


Israeli FM: ‘No justification’ for ICC to take steps against Israeli leaders

Updated 51 min 38 sec ago
Follow

Israeli FM: ‘No justification’ for ICC to take steps against Israeli leaders

  • The foreign minister also said Israel would finish the war in Gaza when it “achieves its objectives”

PRAGUE: Israeli foreign minister Gideon Saar said on Thursday that the ICC had “no justification” for issuing arrests warrants for Israeli leaders, in a joint press conference with Czech Foreign Minister Jan Lipavsky.
Saar told Reuters Israel has appealed the decision and that it sets a dangerous precedent.
The foreign minister also said Israel would finish the war in Gaza when it “achieves its objectives” of returning hostages being held by Hamas in Gaza and ensuring the Iranian-backed group no longer controls the strip. Saar said Israel does not intend to control civilian life in Gaza and that he believes peace is “inevitable” but can’t be based on “illusions.”


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

Updated 28 November 2024
Follow

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.