By: Al-Arabiya English

Lebanon has taken a step toward securing a more stable and cleaner energy supply by signing a memorandum of understanding with Egypt for the import of natural gas. The agreement, inked by Lebanese Energy Minister Joe Saddi and Egyptian Petroleum Minister Karim Badawi, aims to provide Lebanon with gas for electricity generation, reducing its dependence on costly and polluting fuel oil.

The deal revives a 2022 plan to import gas from Egypt via Syria—a route previously blocked by U.S. sanctions and financing issues. With Washington’s recent lifting of certain Syria sanctions, the path has reopened for Lebanon to pursue gas imports through rehabilitated pipelines. Minister Saddi noted that pipeline repairs on the Lebanese side will require several months and that the government will seek support from donor agencies to fund the upgrades.

Lebanon’s electricity sector has been a chronic drain on public finances, accumulating over $40 billion in losses since the end of the civil war. State power supply remains unreliable, forcing households and businesses to rely on expensive private generators and solar panels. Prime Minister Nawaf Salam’s office stated that the memorandum supports Lebanon’s strategy to transition to natural gas and diversify its energy sources.

President Joseph Aoun described the agreement as a “practical and essential step” toward increasing electricity production. The Egyptian petroleum ministry emphasized Cairo’s commitment to supporting energy security in Arab nations.

This move follows a $250 million agreement signed with the World Bank in April to modernize Lebanon’s electricity infrastructure, signaling broader efforts to reform the sector and improve energy resilience.