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.


Israel army tells north Gaza residents to leave ‘combat zone’

Updated 5 sec ago
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Israel army tells north Gaza residents to leave ‘combat zone’

“For your safety, move south immediately,” military spokesman Avichay Adraee said on X
The latest call follows a series of evacuation orders for large swathes of the Gaza Strip’s north

JERUSALEM: The Israeli military called for the evacuation of several areas in northern Gaza on Thursday, again warning that Palestinian militants were launching rockets from there.
“We inform you that the designated area is considered a dangerous combat zone. For your safety, move south immediately,” military spokesman Avichay Adraee said in a post on X along with a map of the area in Gaza City’s northwest.
The latest call follows a series of evacuation orders for large swathes of the Gaza Strip’s north, where Israeli forces have intensified their operations since early October.
Israeli government spokesman David Mencer told reporters that “we are isolating Gazan civilians away from Hamas terrorists so we can get to the terrorists” still in that area.
“Right now, there are residents of the northern part of Gaza who have been evacuated to safer places,” he added.

Greek tanker crippled by Houthi militants starts oil transfer

he Sounion caught fire and lost power after being attacked on August 21 off the coast of Hodeidah. (Aspides)
Updated 07 November 2024
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Greek tanker crippled by Houthi militants starts oil transfer

ATHENS: A Greek oil tanker crippled by Yemen’s Houthi militants and towed to avert an environmental disaster began transferring its cargo of over a million barrels on Thursday, the state-run ANA news agency said.
The Sounion caught fire and lost power after being attacked on August 21 off the coast of Hodeidah, a Houthi-held port city.
The following day its 25-strong crew was rescued. The rebels claimed to have detonated charges on the ship’s deck, sparking new fires.
ANA said the Sounion had begun transferring its cargo of 150,000 tons of crude to another tanker, Delta Blue, at a “safe anchorage” in the port of Suez.
“The vessel is at Suez, and as it’s at a safe anchorage, we are no longer monitoring it,” a source at Greece’s merchant marine ministry told AFP.
Citing ministry sources, ANA said the operation began on Thursday and will last between three and four weeks.
In September, EU maritime safety body Aspides said the Sounion was not under its protection at the time of the attack.
The ship’s original course “was a bit of a mystery,” the ministry source told AFP. “We were told it was heading from Iraq to Singapore. If that were the case, how did it end up in the Red Sea?“
The operation to tow the vessel to safety in September required a tugboat escorted by three frigates, helicopters and a special forces team, ANA said.
Had the vessel broken up or exploded, it could have caused an oil spill four times larger than that caused by the Exxon Valdez in 1989 off Alaska, experts had warned.
The EU naval force was formed in February to protect merchant vessels in the Red Sea from attacks by Houthis.
The Houthis have waged a campaign against international shipping to show solidarity with Hamas in its war with Israel in the Gaza Strip.
They have been firing drones and missiles at ships in the vital commercial route, saying they are targeting vessels linked to Israel, the US and Britain.
The United States, with the support of allies led by Britain, has carried out repeated air strikes on rebel bases in Yemen.


Lebanon says 3 killed, UN peacekeepers wounded in Israel strikes

Members of the UNIFIL peacekeeping force enter a bus at the site of an Israeli strike at the northern entrance of Sidon.
Updated 37 min 37 sec ago
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Lebanon says 3 killed, UN peacekeepers wounded in Israel strikes

  • Three Lebanese soldiers manning the checkpoint were also wounded alongside members of the Malaysian contingent of UNIFIL, according to the army

SIDON: The Lebanese army said an Israeli strike on a vehicle near a checkpoint in the southern city of Sidon on Thursday killed three people and wounded troops and UN peacekeepers.
“The Israeli enemy targeted a car while it was passing through the Awali checkpoint,” the main northern entrance to Sidon, the army said.
With the exception of a few limited strikes, Sidon, a Sunni Muslim-majority city, has been relatively spared the deadly air raids targeting south Lebanon in Israel’s war against the Iran-backed Hezbollah movement.
The strike killed three people, all of them passengers in the targeted vehicle, the army said.
Three Lebanese soldiers manning the checkpoint were also wounded alongside members of the Malaysian contingent of UNIFIL, according to the army.
The UNIFIL peacekeeping force said a “convoy bringing newly-arrived peacekeepers to south Lebanon was passing Sidon when a drone strike occurred nearby.”
“Five peacekeepers were lightly injured and treated by the Lebanese Red Cross on the spot. They will continue to their posts,” it said, urging warring parties “to avoid actions putting peacekeepers or civilians in danger.”
UNIFIL has thousands of peacekeepers
Lebanon’s official National News Agency said a UNIFIL vehicle was on the “same lane” during the strike, which left UN peacekeepers with “minor injuries.”
An AFP correspondent in the area saw the charred, mangled remains of the targeted vehicle which was only a few meters away from an army checkpoint.
The correspondent saw UNIFIL peacekeepers gathered on the sidewalk near the checkpoint, some of them bloodied and wounded after the raid, as paramedics attended to their injuries.
The UNIFIL convoy comprised a number of busses, the correspondent said.
Israeli raids have intensified in recent weeks on Haret Saida, a densely-populated Sidon suburb that has a significant population of Shiite Muslims.
Israel has also increasingly launched targeted strikes on vehicles. A woman was killed Thursday in an Israeli strike targeting a car on a key road linking the capital Beirut with the Bekaa Valley and Syria, a security source told AFP.
Lebanon’s National News Agency reported earlier that “an enemy drone targeted a car in Araya,” adding that the strike left the route blocked to vehicular traffic.
The highway links Beirut to the Syrian capital of Damascus, through the Lebanese mountains.


Hezbollah calls for US action, not words, as Trump reclaims White House

Updated 55 min 11 sec ago
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Hezbollah calls for US action, not words, as Trump reclaims White House

  • “It might be a change in the party who is in power, but when it comes to Israel, they have more or less the same policy,” Moussawi told Reuters
  • “We want to see actions, we want to see decisions taken”

BEIRUT: Hezbollah welcomes any effort to stop the war in Lebanon but does not pin its hopes for a ceasefire on a particular US administration, Hezbollah lawmaker Ibrahim Al-Moussawi said on Thursday when asked about Donald Trump’s election victory.
“It might be a change in the party who is in power, but when it comes to Israel, they have more or less the same policy,” Moussawi told Reuters.
“We want to see actions, we want to see decisions taken,” he said. Israel and Iran-backed Hezbollah have exchanged fire for more than a year, in parallel with the Gaza war, but fighting has escalated since late September, with Israeli troops intensifying bombing of Lebanon’s south and east and making ground incursions into border villages.
Israel says it is targeting Hezbollah infrastructure and military assets, while avoiding civilians. Hezbollah and Lebanese officials point to the rising death toll, with more than 3,000 killed, and widespread destruction in the country as evidence that Israel is targeting civilians. US diplomatic efforts to halt fighting between Israel and Hezbollah, which included a 60-day ceasefire proposal, faltered last week ahead of the US election on Tuesday in which former President Donald Trump recaptured the White House.
Moussawi acknowledged the heavy toll of Israeli attacks that have blown apart thousands of buildings, mostly in Lebanon’s Shiite Muslim-dominated south and east and Beirut’s southern suburbs, but said the group’s military capabilities remained strong.
“Our hearts are broken — we are losing very dear lives. This feeling that cannot be punished or brought to international justice is a result of USsupport which renders them immune to accountability,” he said.
“America is a full partner in what’s happening because they can exercise influence to stop this destruction.”
Massad Boulos, a Lebanese-American billionaire who is the father-in-law of Trump’s daughter, Tiffany, said he would be in charge of negotiating with the Lebanese side to reach an agreement to end the war, Lebanese broadcaster Al Jadeed quoted him as saying this week.
He also said that Trump was aiming to end the war before he took office in January, Al Jadeed reported. Reuters could not immediately reach Boulos.
The Israeli government celebrated Trump’s return to power, saying he was a leader who would support them “unconditionally.”
STRIKE AT ARMY CHECKPOINT
Overnight on Wednesday, Israel carried out a series of strikes in Beirut’s southern suburbs, including at least one strike just tens of meters from Beirut airport’s runways.
Lebanese Transport Minister Ali Hamiye said the airport was functioning normally on Thursday.


France sees ‘window’ to end Gaza, Lebanon wars after Trump win

Updated 07 November 2024
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France sees ‘window’ to end Gaza, Lebanon wars after Trump win

JERUSALEM: French Foreign Minister Jean-Noel Barrot said Thursday in Jerusalem he saw prospects for ending Israel’s wars in Gaza and Lebanon after Donald Trump was elected US president.
“I believe a window has opened for putting an end to the tragedy in which Israelis, Palestinians and the entire region have been immersed since October 7” last year, Barrot told reporters in Jerusalem.
Speaking alongside outgoing Israeli Foreign Minister Israel Katz, Barrot cited Trump’s “wish to see the end of the Middle East’s endless wars” as well as Israel’s recent “tactical successes.”
Barrot said he hoped a “diplomatic solution” would emerge “in the coming weeks.”
“Force alone will not be enough to guarantee Israel’s security,” he said, adding that “military success could not be a substitute for a political perspective.”
“It is time to move toward a deal that would allow for the liberation of all hostages, a ceasefire and the mass entry of humanitarian aid into Gaza, and to prepare for the day after.”
Barrot said “Israel has the right to defend itself” but pointed to “colonization,” “humanitarian aid restrictions” and “the continuation of air strikes in north Gaza” as risk factors for Israel’s security.
Barrot is expected to speak with Palestinian Authority president Mahmud Abbas and his prime minister, Muhammad Mustafa