US urged to allow Egypt, Jordan gas deal with Lebanon via Arab Gas Pipeline

  • Date: 16-Jul-2021
  • Source: Al Arabiya
  • Sector:Oil & Gas
  • Country:Egypt
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US urged to allow Egypt, Jordan gas deal with Lebanon via Arab Gas Pipeline

The Biden administration is being pressed to allow Lebanon to receive natural gas from Egypt, which would have to pass through Syria and potentially expose Cairo to sanctions under the Caesar Act, sources familiar with the discussions said.

A senior World Bank official told Al Arabiya English that discussions were underway with officials in Beirut and Cairo for a deal where the gas would be exported to two of Lebanon's power plants - the Zahrani plant in south Lebanon and the Deir Ammar power plant in north Lebanon.

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The World Bank is willing to provide help with funding such a project under the condition that Lebanese officials agree to strict measures of transparency and the implementation of the World Bank's model.

Political bickering and sectarian calculations prevented a previous power plan from materializing, which would have seen other power plants built.

But current discussions would not require additional plants. "The two power plants we are looking at are capable of running of gas and heavy fuel oil," the World Bank official said.

The major sticking point, however, is that Egypt could face sanctions from the US under the Caesar Act, which was