Qatar Proposes Two Power Plants and 20-Year LNG Deal for Lebanon

Qatar has proposed building two 825-megawatt gas-fired power plants in Lebanon and supplying liquefied natural gas for 20 years, under an investment program that could be implemented within three years if approved swiftly.

The blueprint, seen by Reuters, would expand generation and fuel supplies in a country where the state utility delivers electricity for only a few hours each day.

Both governments must approve the proposal, which remains open to revision.

The plants would be built at Deir Ammar in northern Lebanon and Zahrani in the south.

Together, the combined-cycle facilities would add 1,650 MW of capacity.

Long-Term Fuel Supply

QatarEnergy would sign the proposed LNG agreement with Lebanon.

The fuel supply arrangements envisage a floating storage and regasification unit handling 3.5 million cubic meters a day, plus 4.5 million cubic meters a day via the Arab Gas Pipeline through Syria.

The October 2026 document, prepared with contributions from both governments, calls the initiative the National Integrated Energy Investment Program.

Its scope extends beyond gas generation to 800 MW of solar capacity, 440 MW of wind, battery storage, and cross-border electricity connections. Initial imports from Syria would total 300 MW through two routes.

Financing Terms Unresolved

The proposal seeks private and project financing to avoid requiring Lebanon to fund construction upfront.

“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 states.

A person familiar with the proposal told Reuters that implementation could take three years if the government approves quickly.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani pledged support for Lebanon’s electricity sector during a visit last week, but disclosed few specifics.

Qatar’s Foreign Ministry and Lebanon’s energy minister did not respond to Reuters’ requests for comment.

Record of Stalled Reforms

Lebanon’s electricity sector has added tens of billions of dollars to public debt since the 1975–1990 civil war while failing to establish round-the-clock service.

Households and businesses cover the supply gap with costly private diesel generators, whose exhaust contributes to pollution over Beirut.

Previous attempts to overhaul the grid have stalled amid political disputes and senior politicians’ interests in fuel and energy businesses.

The Lebanese proposal follows Qatar’s expanding energy involvement in neighboring Syria.

Qatari conglomerate Power International Holding has secured contracts there covering 5,000 MW of generation, alongside oil and gas extraction and pipelines.