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By Sunniva Rose — thenationalnews.com — Lebanese officials are closing in on a $600 million World Bank loan to fund a regional power deal that would provide Lebanon with six more hours of electricity per day in the coming months, Energy Minister Walid Fayad has said. Egypt has committed to selling a minimum quantity of gas to Lebanon equivalent to 650 million cubic metres per year to provide 450 megawatts of electricity, said Mr Fayad. Jordan is expected to transfer 250MW from its power grid to Lebanon. The World Bank will fund the deal which is aimed at alleviating Lebanon’s worsening electricity shortages via a loan that will be disbursed over the next two years, Mr Fayad told The National on Tuesday.
“We are rounding the funding to make sure the full amount is available for both the Jordanian and Egyptian gas deals because they are likely to happen simultaneously rather than sequentially,” he said. “That would amount to about $300m in total for the Egyptian deal. For Jordan, my estimate is approximately about $200m. I’d say the total reaches about $600m,” he said. Following the mapping of the Arab Gas Pipeline, Egyptian gas sent to Lebanon must go through Syria.
Countries involved in the deal will be able to avoid US sanctions on Syria issued in 2019 via the Caesar Act by paying in kind instead of in cash for transit services, with Damascus keeping a small portion of the gas. “Jordan and Egypt received letters of reassurance from the US administration [regarding US sanctions] but they need to continue the due diligence process to make sure all companies are properly listed,” said Mr Fayad. Lebanon will pay Egypt between $7 and $10 per million BTU (British Thermal Unit) — a measure used for energy sources including natural gas — of which Syria would take the equivalent of $0.75 per BTU, said Mr Fayad. It remains unclear whether or not the 650 million cubic metres of gas will include the portion that goes to Syria.





