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Qatar plans 2 power plants, 20-year gas deal for Lebanon

Cyprus Mail · 2026-10-21

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• What happened: Qatar plans 2 power plants, 20-year gas deal for Lebanon The proposal includes two power plants, a long-term LNG supply agreement and renewable energy projects aimed at easing Lebanon's chronic electricity shortages.Qatar plans to construct two power plants in Lebanon over the next three years and sign a 20-year liquef... • Why it matters: This update may be relevant for Cyprus residents, visitors, businesses or policymakers. • What to watch next: Follow CyprusDailyLife for updates.

The proposal includes two power plants, a long-term LNG supply agreement and renewable energy projects aimed at easing Lebanon's chronic electricity shortages.Qatar plans to construct two power plants in Lebanon over the next three years and sign a 20-year liquefied natural gas supply deal under a proposal to revive the ailing Lebanese power sector, a document seen by Reuters showed. Lebanon’s energy sector is at the centre of the country’s financial and economic malaise, contributing tens of billions of dollars to the national debt since the country’s 1975-1990 civil war even as it failed to deliver 24/7 power. The state power company currently supplies just a few hours of power per day, with the rest coming from expensive private diesel generators that spew toxic exhaust often seen forming a yellow-grey layer of smog above Beirut. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani visited Lebanon last week and publicly promised to help revitalise the country’s power sector. Few details were then presented to reporters. Qatar proposes major investment in Lebanon’s power sector But according to a proposal drafted with input from the Lebanese and Qatari governments, dated October 2026 and seen by Reuters, the programme “covers gas-fired power generation, LNG supply and regasification, renewable energy, battery storage, and regional electricity interconnections”. “The program aims to attract private/project financing without upfront Lebanese public-budget capital expenditure; payment obligations and guarantees remain subject to negotiation,” the document said. The blueprint, named the National Integrated Energy Investment Program, still requires the approval of both governments and is subject to amendment, a person familiar with the matter said. They put the timeframe for implementation at three years if approvals come swiftly. Qatar has been a longtime financial and political backer of Lebanon, stepping in multiple times over the last decades during times of political and economic crisis. The Qatari Foreign Ministry did not immediately respond to a request for comment on the proposed plan. Lebanon’s energy minister also did not respond to a request for comment. New power plants and long-term gas supplies According to the document, the plan includes two new combined-cycle plants at Deir Ammar in northern Lebanon and at Zahrani in the south, each at a capacity of 825 megawatts. QatarEnergy would also enter a 20-year LNG supply agreement with Lebanon, using both a floating storage and regasification unit with a capacity of 3.5 million cubic meters per day, and the Arab Gas Pipeline via Syria at a capacity of 4.5 million cubic meters per day. Renewable energy and regional connections The proposal also includes plans for 800 MW of solar and 440 MW of wind, battery capacity and power imports from Syria, beginning with 300 MW via two separate routes. Numerous proposals to reform Lebanon’s power sector and provide electricity through the national grid have repeatedly stalled due to political bickering and the vested interests of senior politicians in the fuel and energy sectors. The proposal would build on a growing Qatari presence in neighbouring Syria, where Qatari conglomerate Power International Holding has secured contracts for 5,000 MW of power generation, as well as oil and gas extraction and pipelines.

Source: Cyprus Mail
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