Hopes up for alternative power sources

"Replacing fuel with natural gas for power production saves $1 billion per year"

The Ministry of Energy and Water has concluded feasibility studies for a major plan to import natural gas for producing electricity. The plan involves installing a 175 kilometer-pipeline to transfer and distribute the imported gas.

The Minister of Energy and Water, Gebran Bassil, said that several companies are interested in undertaking the construction of the network, and some of them have shown interest in contributing to the financing of the project.

Bassil said that the gas network will extend from Beddawi in the North to Tyre in the South, and thus the gas will be channeled to all power plants across the coastal line. He said that the imported gas could also be channeled directly into factories across the country, helping to cut down energy costs.

Bassil said that the previous gas network plan, which was ready to launch in 2010, was blocked because funding was not provided. Bassil said that the MoEW is currently drafting a special law for funding the gas network. If adopted, the draft law would allow for the plan to be financed without the need to consult the Parliament, and regardless of whether the budget is approved.

The installation of the network will take around two years. The estimated cost of the plan is around $455 million, Bassil said, citing the studies conducted by two consultancy firms, Lebanon-based ‘Associated Consulting Engineers’ (ACE) and Britain-based IMEG. However, he said, once operating, the network could repay this amount in just four months. “Producing electricity through natural gas could save the power plants up to $1 billion per year, considering the current prices of fuel and gas.”

According to Bassil, there are several sources from which Lebanon could import natural gas. The first source, which Bassil said could be unreliable on the long run, is through the inter-Arab network. The second source for importing gas is from Iraq and Turkey via Syria. Bassil said that arrangements to connect Syria’s gas network to the two countries are underway.

According to Bassil, Lebanon can also import gas in its liquid form through the sea from Qatar, Yemen, Algeria, and Egypt. In a 2010 study commissioned by the World Bank, US-based firm ‘Poten & Partners’ recommended that Lebanon import liquid gas from these countries and construct a subsea pipeline and floating storage re-gasification unit to import natural gas. Bassil said that the cost of constructing the unit was estimated at around $200 million.


by Hanadi Chami