Qatar proposes two Lebanese power plants and a 20-year LNG supply deal

what happened

Qatar plans to build two power plants in Lebanon over roughly three years and to sign a two-decade liquefied natural gas supply agreement, according to a draft plan reviewed by Reuters. The document, dated October 2026, aims to revive a power sector that now delivers only a few hours of state electricity per day, leaving households and businesses dependent on costly private diesel generators.

The initiative, called the National Integrated Energy Investment Program, covers gas-fired generation, LNG imports and regasification, renewables, battery storage and regional grid links. It is designed to draw private financing without large upfront outlays from Lebanon's budget, though payment terms and guarantees are still under negotiation and both governments must approve it. The two combined-cycle units, at 825 MW each, would be sited at Deir Ammar in the north and Zahrani in the south. QatarEnergy would supply gas through a floating storage and regasification unit and via the Arab Gas Pipeline through Syria. The plan also envisages 800 MW of solar, 440 MW of wind and power imports from Syria, starting at 300 MW.

For gas markets the immediate effect is modest, since the volumes are moderate and the project still lacks approval, and earlier reform attempts in Lebanon repeatedly stalled over politics. Even so, a new long-term LNG buyer in the Eastern Mediterranean is worth tracking. The proposal also fits a wider Qatari push into Syria, where the conglomerate Power International Holding has secured contracts for 5,000 MW of generation along with oil, gas and pipeline work.

why it matters

For gas markets the effect is limited for now: volumes are moderate, the project is not yet approved, and past reform efforts in Lebanon's power sector broke down over politics. A long-term LNG contract of this kind could still become a reference point for future regional deals.

market impact

Gas and LNG: a potential new long-term LNG buyer, but the market effect is limited for now

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