Lebanon in talks for 20-year gas deal with Qatar

Lebanon's Prime Minister Nawaf Salam has reported significant advancements in negotiations for a potential 20-year natural gas agreement with Qatar during his visit to Doha. This deal holds promise for Lebanon's struggling energy sector, which struggles to generate electricity for more than a few hours daily, with many residents relying on costly private generators.

The discussions revolve around proposals such as generating more electricity in Lebanon, importing energy via Syria, and constructing a terminal to receive gas by sea. The government officials are also working on a 20-year agreement to supply liquefied natural gas from Qatar along with renewable energy projects. Salam expressed gratitude to Qatar for their support during their challenging circumstances.

He further announced that Lebanese energy officials were in Doha on Sunday evening to delve into the technical aspects. Qatar, being one of the world's leading gas producers, experienced a 42% decline in state revenue in the first half of the year due to production curtailments from Iranian attacks. However, the country's economy is expected to rebound with a 15% growth forecasted next year.

In contrast, Lebanon is grappling with war and occupation due to Israel's conflict with Hezbollah. The ongoing war has further exacerbated Lebanon's financial crisis. The state power provider, Electricite du Liban (EDL), recently initiated electricity cuts to public institutions that have failed to pay bills, including institutions endangered by the 2020 Beirut port blast.

Lebanon, being an import-dependent nation, is particularly vulnerable to inflation and fuel price hikes caused by the US-Iran war.