Lebanese Energy Minister Walid Fayyad held the United States responsible for delaying the transfer of Egyptian gas and Jordanian electricity to his country through Syrian territory, which Beirut was counting on to solve the electricity crisis.
More than 600 days have passed since the US ambassador to Beirut, Dorothy Shea, pledged to provide a solution to the electricity crisis in Lebanon, which forced most of the population to rely on expensive private generators to meet their living needs.
The ambassador’s offer came over the phone on August 19, 2021, hours after Hezbollah Secretary General Hassan Nasrallah announced the imminent arrival of Iranian diesel to Lebanon, according to data seen by the specialized energy platform.
Shea’s response to Nasrallah’s initiative was by announcing an ambitious initiative funded by the World Bank that supports the transfer of Egyptian gas and Jordanian electricity – through Syrian territory – to Beirut.
After about 22 months of promises and discussions, the White House still refuses to grant the 4 Arab countries exemptions from sanctions. Washington claims that helping Lebanon obtain energy through Syria will undermine the US Caesar Act sanctions against Damascus.
Electricity crisis in Lebanon
Lebanese Energy Minister Walid Fayyad revealed, in an interview with The Cradle, the complex circumstances that prevent Lebanon from securing much-needed energy resources from Egypt and Jordan.
Fayyad said, “Before my appointment as Minister of Energy, I met President Michel Aoun..and he told me that the power outage crisis in Lebanon would finally be resolved, and that the World Bank was ready to finance a project to deliver electricity and gas from Jordan and Egypt to Lebanon.”
He added, “I believed that such a strategic Arab project, with American support, was the logical solution to the crisis… It was a golden opportunity for Lebanon, and I think we must seize it, as it has the support of all concerned parties.”
He pointed out that what supports the project is that it is simple, economically, geographically and politically. The relationship with Syria is historical, and Egypt is a major Arab country that is constantly striving to strengthen Arab relations.
He hinted that the announcement of the initiative by the US ambassador may have come in response to Hezbollah Secretary Hassan Nasr’s announcement of importing fuel from Iran.
Obstacle of passage through Syria
The Lebanese Minister of Energy indicated that the main obstacle currently relates to the passage of gas and electricity through Syria, saying: “After we reached an agreement with Damascus and informed the United States and the World Bank that Syria would not impose fees, but rather would get 8% of the gas that will pass through its territory, we did not The Americans object to that, as it does not include paying money to Syria.
He added, in his interview with The Cradle, which was reviewed by the specialized energy platform: “The final approval was pending until knowing the remaining details related to the companies participating in the contract, and making sure that there are no names included in the US sanctions list.”
Fayyad denied that the delay in the World Bank’s approval of financing the project was due to the Lebanese Ministry of Energy’s delay in appointing members of the Electricity Regulatory Authority, saying: “No; there was no condition for appointing members of the Electricity Regulatory Authority… as our agreement with the World Bank was to launch the recruitment process 18 months to appoint them, then another 18 months to activate the work of the authority, and we did that.
The Lebanese Minister of Energy indicated that in the spring of 2022, a meeting of the Executive Board of the World Bank was held in Washington, and there were different opinions; As some called for reforms not only in the energy sector, but in all sectors, and the World Bank confirmed that it wants to move forward with the project, but there are forces that impede it.
The American position changed
Fayyad confirmed that the United States was initially supportive of the project, according to the statements of the American ambassador, but at some point there was ambiguity, especially with regard to the issuance of American permits to exempt Egypt and Jordan from sanctions.
He said, “The exemption should have been issued prior to the Lebanese agreement with the World Bank, or vice versa.. But by the summer of 2022, the ambassador began indicating the need to meet the requirements of the World Bank, which had not been previously discussed or agreed upon with the Ministry of Energy.” .
Fayyad added: “The Americans claim that the World Bank is the obstacle, but I know that they are major partners and have great influence.”
The Lebanese Minister of Energy attributed the decline in the US administration’s desire in light of the differences of opinion in Congress over whether Syria should be allowed to benefit from the gas that will pass through its territory.
Fayyad stressed that the Syrian side is ready to implement the project, as soon as the Egyptian gas reaches its territory, it will be used there to generate electricity, and Syria will send the same amount of Syrian gas to Lebanon, after deducting 8% of the transit fees.
Fayyad said, “We pay nearly a billion dollars for 700 megawatts. Egyptian gas and Jordanian electricity will enable us to obtain 700 megawatts for 500 million dollars, meaning that the savings that will be achieved amount to 500 million dollars annually. In addition to that, the increase in electricity supply hours reduces It reduces the cost of electricity in all sectors and reduces the use of generators, thus reducing the cost of production and commodity prices.
Show Iran
The Lebanese Minister of Energy revealed the details of Tehran’s offer to grant Beirut free quantities of oil to produce electricity for at least 6 months, according to data seen by the specialized energy platform.
He said, “We sent a delegation to Tehran to study the specifications, and the Iranians confirmed their willingness to provide us with everything we need, as the Iranians announced the provision of $350 million worth of diesel fuel, which can secure 4 hours of electric power per day, which would have contributed to raising feeding hours.” To 10 hours of electricity per day, if oil is obtained from Iraq and Iran and gas from Egypt.
Fayyad accused the United States of hindering Lebanon’s cooperation with its allies in order to obtain its energy needs, after the Lebanese government refused to accept the Iranian offer due to US sanctions.
He said about America obstructing a solution to the energy crisis in Lebanon: “Yes, in terms of the Iranian offer, this is clear. With regard to Egypt, the United States has been supportive since August 2021, but Cairo requested written guarantees from Washington. Unfortunately, these guarantees have not been completed yet.” .
In a report in March 2023, Human Rights Watch attributed the electricity crisis in Lebanon to the failure of successive governments over 30 years to manage the crisis.
It said decades of unsustainable policies and fundamental neglect, as a result of elite control over state resources, alleged corruption, and vested interests led to the sector’s complete collapse in 2021 amid the ongoing economic crisis; What left the country without electricity for most of the day.
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