Lebanon weighs LNG imports via Jordan as cost and financing risks cloud power plan
Lebanon is considering importing LNG through Jordan’s Aqaba terminal and moving regasified fuel through the Arab Gas Pipeline to its power stations. Experts told Al Taqa that the route could reduce reliance on fuel oil, but shipping, regasification, transit and financing costs may undermine its commercial viability.
Aqaba route targets Deir Ammar
Lebanon is examining a plan to import liquefied natural gas through Jordan as it seeks additional fuel for an electricity system constrained by chronic financial and operational problems. Under the proposed route, LNG would arrive at the port of Aqaba, be converted back into gas and then travel through the Arab Gas Pipeline, crossing Jordan and Syria before reaching Lebanon.
Lebanon’s energy minister has said the gas would supply power plants, led by the Deir Ammar facility in northern Lebanon. Deir Ammar was designed to operate on natural gas but currently burns fuel oil. The Zahrani plant could also use gas at a later stage, according to experts interviewed by the specialist publication Al Taqa.
Gas would offer technical and environmental advantages over fuel oil, but the proposed supply chain has several cost layers. Buyers would have to cover the LNG itself, shipping to Aqaba, regasification in Jordan, pipeline transport and transit charges in Jordan and Syria. Financing, maintenance, pipeline losses and the gas consumed by compressor stations would add further expenses.
Delivered cost determines viability
Yasser Hilal, head of the Sharq Energy Center for Studies and Consulting, cited World Bank estimates putting liquefaction, transport and regasification at about $5 per million British thermal units. That figure excludes pipeline transport and transit fees. The gas would also have to travel about 840 kilometers, requiring compressor stations along the route.
Naji Abi Aad, an energy economics expert and chief executive of Petrolab in Beirut, told Al Taqa that LNG is already expensive before regasification and transit charges are included. He said fuel oil could be cheaper than gas delivered through this mechanism, even though gas performs better environmentally. The central question is who would absorb the difference between electricity production costs and Lebanon’s limited consumer tariffs. That burden could fall on Electricité du Liban or the state.
Jessica Obeid, an electricity public-policy adviser and energy engineer, said the comparison should be based on the price of gas upon arrival at Deir Ammar, not the headline LNG price. She also warned that global LNG prices are volatile. About 20% of global LNG trade passes through the Strait of Hormuz, increasing exposure to geopolitical disruption and shipping interruptions.
Financing and infrastructure remain obstacles
The route would increase Lebanon’s dependence on infrastructure and counterparties in Jordan and Syria. It may therefore work better as an emergency supply option than as a permanent source of affordable fuel. Hilal pointed to the recent use of Aqaba to regasify LNG cargoes redirected for Egypt and move the gas through the network during summer supply pressures.
An alternative would be for Lebanon to lease a floating regasification unit. Hilal said its capacity would need to serve all compatible power plants, rather than Deir Ammar alone, to spread costs and improve utilization. Lebanon could also explore leasing a larger unit jointly with Syria, following cooperation models used by Egypt and Jordan.
Earlier plans centered on Egyptian gas transported through the Arab Gas Pipeline. Laurie Haytayan, Middle East and North Africa director at the Natural Resource Governance Institute, said the proposal was revived in 2022 after the Lebanon-Israel maritime boundary agreement. Egypt’s rising domestic requirements have since weakened its ability to supply Lebanon: it imports gas from Israel and buys LNG cargoes from countries including the United States.
Fuel availability alone will not resolve the financial weakness of Lebanon’s electricity sector. Obeid said Electricité du Liban needs sufficient cash to pay for fuel and maintain operations. She called for lower system losses, stronger bill collection and repairs to the grid. Without those measures, imported gas could increase costs for the state and consumers without delivering a financially sustainable improvement in power availability.