Lebanon receives Egypt gas to run Deir Ammar plant

BEIRUT: Caretaker Energy and Water Minister Alain Tabourian announced on Monday that Egypt has started delivering natural gas to Deir Ammar power station in the north, stressing that this move will allow Lebanon to save up to $240 million on its energy bill alone each year. Speaking at a press conference, Tabourian said that the first unit in the station is now operational and President Michel Sleiman and several Arab ministers will officially inaugurate the gas-fired station in a month and half.

“After we made sure of the safety of the gas pipeline, the Egyptian natural gas was finally siphoned to Deir Ammar station,” the minister said.

Tabourian indicated that after a 14-year hiatus, Deir Ammar plant is now operating on gas and this has several important aspects such as better protection of the environment and above all the cost is much cheaper.

Nearly all of the country’s power stations run on gas and fuel oil, adding an enormous financial burden on the cash-strapped treasury.

The Finance Ministry complains that the deficit of Electricite du Liban (EDL) is more than $1.2 billion a year, representing the third-largest spending item after the cost of debt servicing and salary of public staff.

“I am proud that as energy minister we were able to achieve one of the main goals in the ministerial statement,” Tabourian said.

But the minister stressed that the Egyptian gas does not mean that the electricity capacity will increase.

“This has nothing to do with increasing capacity. It will only reduce cost,” he explained.

He added that if the price of a barrel of oil stood at $75 then Lebanon can save $240 million.

Tabourian added that if Lebanon managed to transform another plant into gas then the savings will be even greater.