Qatar has been among few key countries that have continued to discuss rescue plans for Lebanon while extending a helping hand to support its collapsing sectors.
Qatar has expressed interest in investing in Lebanon’s solar energy sector as the country scrambles to secure power supply amid its worst economic downfall in decades, according to Lebanese officials.
“We started talks with QatarEnergy and TotalEnergies because they showed interest in this regard and we seek to draw investments from the east and the west and particularly from China,” Lebanese energy minister Walid Fayad told Arab energy media outlet, Attaqa, on Tuesday.
Fayad’s remarks come as Lebanon seeks to shift to solar power amid a significant shortage in Beirut. The Lebanese government’s Eléctricité du Liban (EDL) is only able to generate power that is enough for a few hours on a daily basis.
As a result, the country faces hours-long blackouts, forcing the population to rely on costly diesel-fuelled generators that are difficult to use amid an energy shortage.
The International Renewable Energy Agency previously estimated that placing a plan on Lebanon’s usage of renewable sources could help it source 30% of its electricity by 2030.
The Lebanese currency hit an all-time low after losing more than 90% of its value to the US dollar since 2019. The situation was further exacerbated following the Covid-19 outbreak and Beirut Port explosion in 2020.
Lebanon has yet to financially recover despite billions of aid sent to the country.
Qatar has been among few key countries that have continued to discuss rescue plans for Lebanon while extending a helping hand to support its collapsing sectors.
Last month, QatarEnergy joined a tripartite oil and gas exploration consortium in two maritime blocks in Lebanon.
Under the agreement, the Qatari company will join France’sTotalEnergies and Italy’s Eni following months of talks to explore blocks 4 and 9. QatarEnergy will now acquire a 30% stake, as each of the other two countries hold 35%.
The development follows a major breakthrough in the maritime borders dispute between Lebanon and Israel following US mediation. Qatar previously welcomed the US mediation in the dispute, which dates back to 2007.
Under the US-mediated deal, Lebanon and Israel cannot carry out any exploration in Block 9.
Speaking to Doha News at the time of the signing, analysts said the agreement “might bring some hope” to the country’s situation by potentially generating jobs.
“Qatar’s participation in joining TotalEnergies and ENI would bring benefits to Qatar but is also included in the Qatari approach to support and permanent interest in helping Lebanon at different times,” Dr. Laura Sayah, assistant professor in the Lebanese University, told Doha News.
Meanwhile, Doha has also emerged as a key partner for Europeans amid an ongoing global energy crisis that has been exacerbated by the Russian war on Ukraine.
QatarEnergy has been leading expansions of liquified natural gas (LNG) production under its multi-billion North Field Expansion project, the largest of its kind.
