Power
Qatar proposes comprehensive overhaul of Lebanon energy sector
Qatar has unveiled a comprehensive proposal to construct two power plants and supply liquefied natural gas to Lebanon over a three-year period.
Key points
- The initiative aims to build two combined-cycle plants at Deir Ammar and Zahrani.
- QatarEnergy would supply liquefied natural gas under a proposed 20-year agreement.
- The program also covers renewable energy installations, battery storage, and regional grid interconnections.
What happened
According to Reuters reporting published by The Jerusalem Post, Qatar has put forward an extensive blueprint to revitalise Lebanon's ailing electricity infrastructure. The proposal, designated the National Integrated Energy Investment Program, was drafted with contributions from both the Lebanese and Qatari governments.
The framework aims to avoid upfront public capital expenditure by attracting private and project financing, although financial guarantees remain under discussion. The implementation schedule targets a three-year window for completion, contingent upon formal approvals from both administrations.
Programme details
The strategy outlines the construction of two combined-cycle power generation facilities located at Deir Ammar in the north and Zahrani in the south. Each plant is designed with a capacity of 825 megawatts. Furthermore, QatarEnergy would enter a 20-year supply agreement utilising a floating storage and regasification unit alongside imports via the Arab Gas Pipeline through Syria.
Beyond gas-fired generation, the draft incorporates 800 megawatts of solar power, 440 megawatts of wind energy, battery storage systems, and electricity imports from Syria. Lebanon's state power utility currently delivers electricity for only a few hours daily, forcing reliance on costly private diesel generators that contribute significantly to regional pollution and national debt.
Why it matters
For energy investors and policymakers across developing markets, the proposed intervention highlights the growing role of strategic bilateral infrastructure agreements in resolving systemic fiscal and operational deficits. Lebanon's power sector has long struggled with structural inefficiencies and political stalemates, leaving its infrastructure heavily dependent on emergency solutions.
While World Bank figures indicate that Lebanon maintained full electricity access for its population, the unreliability of supply has severely constrained economic productivity. For African and Middle Eastern energy markets facing similar fiscal constraints, leveraging private financing models and regional interconnections without heavily burdening public budgets offers a potential pathway for sector rehabilitation, provided that regulatory and political frameworks can support long-term investment commitments.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
100.0% of people in Lebanon had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
