Lebanon: Gas Import Agreement from Egypt Disrupted by Unsecured WB Financing

Électricité du Liban building (Asharq Al-Awsat)
Électricité du Liban building (Asharq Al-Awsat)
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Lebanon: Gas Import Agreement from Egypt Disrupted by Unsecured WB Financing

Électricité du Liban building (Asharq Al-Awsat)
Électricité du Liban building (Asharq Al-Awsat)

An agreement to transport Egyptian gas to Lebanon via Syria is currently disrupted by Lebanon’s failure to meet the conditions for obtaining a World Bank loan and Washington’s reluctance to give an official approval confirming that the deal is not affected by the Caesar Act, sources told Asharq Al-Awsat on Tuesday.

They said Lebanon continues to suffer from a severe crisis in electricity supply, while concerned officials are only offering temporary solutions to the problem, either by renewing a contract to import fuel from Iraq or searching for other sources from Algeria and Kuwait to secure fuel.

“There is a failure in revealing the main reasons behind the delay to benefit from importing gas from Egypt and electricity from Jordan, even though Lebanon had signed an agreement with the governments of both countries in this regard,” the sources said.

Last June, Lebanon signed a deal with Egypt to import gas to a power plant in northern Lebanon through Syria.

The sources, who spoke on condition of anonymity, said they fear the deal would remain ink on paper, and that Lebanon’s alternative would remain the reliance on illegal private generators that are treated as a fait accompli.

The political sources then accused some ministers, specifically caretaker Energy Minister Walid Fayad, of colluding with the owners of generators and providing them with official protection on the pretext that they cover the government’s inability to provide electricity to the Lebanese.

“The Egyptian government may be forced to explain to the Lebanese the facts related to the gas file at the appropriate time,” the sources said, accusing the Energy Ministry of conspiring with influential people who control the generator mafia to keep the electricity situation as it is.

Meanwhile, they revealed that the delay in benefiting from the use of Egyptian gas awaits US “clearance” from sanctions that penalize anyone dealing with the government in Damascus, and also awaits financing from the World Bank.

US ambassador Dorothy Shea had repeatedly announced that Washington does not stand against the deal.

But, the sources asked why the US Congress has not yet sent a letter to Egypt and Jordan confirming that both countries will not be subject to sanctions.

They affirmed that Cairo has nothing to do with this delay.

“The problem is limited to the US administration that is hesitant in sending a message to both Egypt and Jordan clearing them from being penalized by the Caesar Act,” they said.

Moreover, the deal with Egypt is linked to the failure of the Lebanese government and Fayyad to approve a list of reforms in the power sector, which the WB has set as a precondition to financing the deal.

Lebanon has failed to revamp the electricity sector by increasing power supply and then raising prices in an effort to close the state-run electricity company's deficit amid a crushing economic crisis.



UK PM Tells Netanyahu Peace Process ‘Should Lead’ to Palestinian State

British Prime Minister Keir Starmer holds a press conference on the Southport attacks in the Downing Street Briefing Room in London, Britain, 21 January 2025. (EPA)
British Prime Minister Keir Starmer holds a press conference on the Southport attacks in the Downing Street Briefing Room in London, Britain, 21 January 2025. (EPA)
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UK PM Tells Netanyahu Peace Process ‘Should Lead’ to Palestinian State

British Prime Minister Keir Starmer holds a press conference on the Southport attacks in the Downing Street Briefing Room in London, Britain, 21 January 2025. (EPA)
British Prime Minister Keir Starmer holds a press conference on the Southport attacks in the Downing Street Briefing Room in London, Britain, 21 January 2025. (EPA)

UK premier Keir Starmer told Israeli leader Benjamin Netanyahu on Tuesday that any peace process in the Middle East should pave the way for a Palestinian state, Downing Street said.

The two leaders held a call that focused on the fragile ceasefire between Israel and Hamas in the Gaza Strip, a UK government spokesperson said.

During the conversation, "both agreed that we must work towards a permanent and peaceful solution that guarantees Israel's security and stability", the British readout of the call added.

"The prime minister added that the UK stands ready to do everything it can to support a political process, which should also lead to a viable and sovereign Palestinian state."

Starmer also "reiterated that it was vital to ensure humanitarian aid can now flow uninterrupted into Gaza, to support the Palestinians who desperately need it", the statement added.

Starmer "offered his personal thanks for the work done by the Israeli government to secure the release of the hostages, including British hostage Emily Damari", the statement added.

"To see the pictures of Emily finally back in her family's arms was a wonderful moment but a reminder of the human cost of the conflict," Starmer added, according to the statement.

A truce agreement between Israel and Hamas to end 15 months of war in Gaza came into effect on Sunday.

The first part of the three-phase deal should last six weeks and see 33 hostages returned from Gaza in exchange for around 1,900 Palestinian prisoners.