Government official: Exporting Egyptian gas to Lebanon faces difficulties

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Egypt Gas export

Egypt Daily News – The exporting of Egyptian gas to Lebanon is encountering significant hurdles, primarily due to Lebanon’s lack of infrastructure to handle liquefied natural gas (LNG).

Specifically, Lebanon does not have liquefied gas gasification units, which makes it ill-equipped to receive LNG shipments directly. Instead, the plan for exporting Egyptian natural gas involves the existing Arab Gas Pipeline, which has historically transported gas to Lebanon but ceased operations years ago.

A critical obstacle is the requirement for the gas to transit through Syria, which brings into play concerns about the U.S. Caesar Act. Enacted in 2019, the Caesar Act enables the U.S. to impose sanctions on individuals and entities engaging with the Syrian government.

This poses a risk for Egypt should the gas export project proceed, potentially drawing unwanted economic sanctions.

In June 2022, an agreement was signed between Egypt and Lebanon, outlining plans to supply Lebanon with 650 million cubic meters of natural gas through Syria, utilizing the Arab Gas Pipeline.

However, Egypt has sought assurances from the United States to shield it from sanctions associated with the project.

The Arab Gas Pipeline itself is an extensive network of pipelines that stretches approximately 1,200 kilometers, linking gas supplies from Egypt through Jordan, Syria, and finally to Lebanon.

The pipeline is divided into four phases, starting from the Egyptian city of Al-Arish to Aqaba in Jordan, and proceeding through multiple segments until it reaches Lebanese territory.

The urgency of this project is underscored by Lebanon’s ongoing energy crisis, which has led to widespread power outages across the country due to insufficient gas supplies for power generation.

The Lebanese Minister of Energy, Walid Fayyad, mentioned that Lebanon is anticipating the arrival of gas shipments from Egypt, with expectations set around August 23.

With the current situation, the complexities of international relations, infrastructure limitations, and domestic energy needs make the revival of gas exports from Egypt to Lebanon a multifaceted challenge.

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