Egypt, Lebanon Formalize Agreement for Natural Gas Supply to Deir Ammar Power Station

Egypt, Lebanon Formalize Agreement for Natural Gas Supply to Deir Ammar Power Station

William Faulkner 30-Dec-2025

Egypt and Lebanon signed an MoU enabling Egyptian gas supplies to Deir Ammar, boosting Lebanon’s electricity generation and regional energy cooperation.

Egypt and Lebanon have taken a significant step toward strengthening regional energy cooperation after the Ministry of Petroleum and Mineral Resources signed a Memorandum of Understanding with the Lebanese Ministry of Energy and Water to facilitate the supply of natural gas to Lebanon’s Deir Ammar Power Plant for electricity generation. The agreement reflects a shared commitment to address Lebanon’s chronic power shortages while reinforcing Egypt’s role as a regional energy hub.

The MoU was signed during an official visit by Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources. According to a statement from Ministry of Petroleum and Mineral Resources, the agreement is designed to deepen bilateral relations and make effective use of Egypt’s extensive energy infrastructure to enhance regional energy security and cooperation across the Eastern Mediterranean.

Under the framework of this strategic partnership, Egypt will utilize its established natural gas production, processing, and export capabilities, including the liquefaction facilities at Idku and Damietta. These plants form the backbone of Egypt’s LNG export system and have enabled the country to consistently supply international markets. During the current year, Egypt exported approximately 150,000 to 155,000 cubic meters of liquefied natural gas to destinations such as Greece, Italy, and Türkiye, underscoring the reliability and scale of its export capacity.

A key logistical element supporting the agreement is the recent leasing of the Energos Force Floating Storage and Regasification Unit, which is docked at Port of Aqaba. The FSRU allows LNG to be regasified and transported efficiently through existing infrastructure, including the Arab Gas Pipeline, enabling natural gas to reach Lebanon in a cost-effective and timely manner. This arrangement is expected to play a crucial role in meeting Lebanon’s growing electricity demand, particularly during periods of peak consumption.

During his visit, Badawi held discussions with Joseph Aoun, who described the MoU as a pivotal and practical step toward increasing electricity production and improving energy availability for Lebanese citizens. President Aoun highlighted the agreement’s importance in addressing Lebanon’s pressing energy needs and restoring confidence in the country’s power sector.

Badawi also met with Nabih Berri, with both sides reaffirming the long-standing historical ties between Egypt and Lebanon, particularly in the fields of energy and economic cooperation. The discussions emphasized mutual trust and the shared objective of leveraging regional integration to overcome domestic challenges.

The Egyptian minister reiterated Egypt’s full commitment to supporting Lebanon’s stability and long-term prosperity by sharing technical know-how, operational experience, and institutional expertise in the oil and natural gas sectors. He noted that joint technical and administrative working groups would be established promptly to ensure swift implementation of the MoU’s objectives.

This natural gas supply agreement builds on a broader cooperation framework agreed upon during the 10th Session of the Egyptian-Lebanese Joint Higher Committee, held in Cairo in November 2025. During those meetings, the two countries signed 15 strategic agreements covering areas such as petroleum exploration expertise, refined petroleum product trade, and coordination in taxation, customs, and administrative procedures. Collectively, these initiatives signal a renewed phase of energy collaboration aimed at delivering tangible economic and social benefits to both nations.

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Natural Gas

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