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Egypt Expands Regional Energy Reach With Gas Supply Deal for Lebanon

Egypt Expands Regional Energy Reach With Gas Supply Deal for Lebanon
Wednesday, 07 January 2026 17:12
  • Egypt and Lebanon signed a gas supply memorandum for the Deir Ammar power plant in late December 2025.
  • The agreement aims to support Lebanon’s electricity generation amid severe grid constraints.
  • Egypt continues to expand its regional energy role as Africa’s second-largest gas producer.

In late December 2025, Egypt and Lebanon signed a memorandum of understanding covering the supply of natural gas to the Deir Ammar power plant. The parties concluded the agreement in Beirut between Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, and Lebanon’s Minister of Energy, Joe Saddi. Lebanese Prime Minister Nawaf Salam attended the signing ceremony.

The agreement aims to support electricity production in Lebanon as the country faces severe constraints on its national power system. Egyptian authorities said the protocol followed the recent official visit of Egyptian Prime Minister Mostafa Madbouly to Lebanon. However, the parties disclosed no details regarding gas volumes, delivery timelines, or financial terms.

According to official data from Électricité du Liban, the Deir Ammar power plant holds an installed capacity of about 465 megawatts. The facility accounts for nearly 15% of Lebanon’s total power capacity, which stands at roughly 3,000 megawatts.

More broadly, the agreement reflects Egypt’s strategy to strengthen its regional role in the energy sector. According to OPEC’s Annual Statistical Bulletin 2024, Egypt ranked as Africa’s second-largest natural gas producer in 2023. The country operates extensive infrastructure for gas production, processing, and exports, including transportation networks and liquefaction facilities.

At the same time, Egypt continues to expand its electricity generation capacity, particularly from renewable energy sources. The country also reinforces its regional positioning through cross-border power interconnection projects. Egypt is developing a 3,000-megawatt electricity interconnection with Saudi Arabia, while another project, known as GREGY, aims to link the country’s power grid with Greece.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange Jason Quenum

 

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