Qatar Offers to Build Two Power Plants in Lebanon, Supply LNG for 20 Years via Syria

Plan aims to resolve Lebanon's crippling electricity crisis with no upfront cost to Beirut

By LineZotpaper

Published20 October 2026

Read Time3 min

Qatar has proposed a comprehensive energy program for Lebanon, offering to build two gas-fired power plants within three years and supply liquefied natural gas (LNG) for 20 years through a pipeline crossing Syria, according to a draft program seen by Reuters. The plan, which also includes solar, wind and battery storage components, comes as Lebanon's state utility delivers only a few hours of electricity per day and private diesel generators cover roughly half of demand. Prime Minister Nawaf Salam said Qatar would finance, run and operate the project, with QatarEnergy and TotalEnergies jointly developing a solar plant as the first stage.

Under the National Integrated Energy Investment Program, Qatar would construct two 825-megawatt combined-cycle gas plants - one at Deir Ammar in the north and one at Zahrani in the south. QatarEnergy would deliver gas through a floating storage and regasification unit with capacity of 3.5 million cubic metres per day, and through the Arab Gas Pipeline via Syria at 4.5 million cubic metres per day.

The program also adds 800 megawatts of solar capacity, 440 megawatts of wind, battery storage and 300 megawatts of power imports from Syria over two routes. A person familiar with the matter told Reuters that the build-out could take three years if both governments approve it quickly.

Lebanon's economy is projected to shrink by 6% to 7% this year, and the state utility, Electricite du Liban, supplies only a few hours of power daily. Private diesel generators provided about half of the country's electricity at the start of 2026, according to a report cited by The National.

The document leaves payment obligations and guarantees open for negotiation, with private financing in place of Lebanese public money. The program would extend Qatar's power business in Syria, where a consortium led by Qatar's UCC Holding signed concessions in November 2025 for 5,000 megawatts of generation: 4,000 megawatts of gas-fired combined-cycle plants and 1,000 megawatts of solar.

The gas supply itself depends on Qatari LNG getting out of the Gulf. An Iranian missile strike on Ras Laffan on March 18 knocked out two of Qatar's 14 LNG trains, and QatarEnergy CEO Saad al-Kaabi said last month that Qatar was producing a "very minute" volume of LNG. LNG flows through the Strait of Hormuz remain more than 75% below pre-war levels, and QatarEnergy has extended its force majeure on deliveries every month since early March. On Monday, a Qatari cargo loaded in August was sailing through the Red Sea and Suez Canal toward Poland, a rare use of the shortest route to Europe.

Analysis

Why This Matters

Lebanon's electricity crisis, with only a few hours of grid power daily, cripples economic activity and public services; this program could transform energy access for millions.
Qatar's offer extends its geopolitical influence in the Levant, linking LNG supply through Syria - a country still recovering from civil war - and raising questions about regional energy dependencies.
The gas supply chain faces acute risk: Iranian strikes on Qatar's Ras Laffan facility have slashed LNG production and Hormuz transit remains heavily disrupted, threatening the project's fuel source.

Background

Lebanon has suffered from chronic electricity shortages for decades, worsened by the economic collapse that began in 2019. The state utility's inability to provide reliable power has forced households and businesses to rely on expensive private diesel generators, further straining the economy. The country is now seeking foreign investment to rebuild its power sector. Qatar has been expanding its energy footprint beyond the Gulf, including gas-fired power and solar projects in Syria via the UCC Holding consortium. The Arab Gas Pipeline, which runs from Egypt through Jordan and Syria to Lebanon, has been largely inoperative due to conflict and political disputes.

Key Perspectives

Lebanon: The government sees the program as a lifeline with no upfront cost, but must negotiate payment terms and guarantees. Prime Minister Salam highlighted the solar plant as an early deliverable. However, reliance on Syrian transit routes and Qatari LNG subject to regional instability introduces new vulnerabilities. Qatar: The offer deepens Doha's strategic role as an energy broker in the eastern Mediterranean, leveraging its LNG capacity and construction expertise. Yet Qatar's own export capacity is severely constrained by the Ras Laffan attack and Hormuz blockade, raising questions about whether it can reliably supply the contracted gas volumes. Syria: The pipeline transit route could provide Syria with leverage and potential revenue, but also subjects the project to the security of Syrian infrastructure and any future sanctions regimes. Critics/Skeptics: The program's dependence on a single supplier and a transit country with a history of conflict creates significant geopolitical risk. The lack of clarity on payment guarantees and the three-year timeline for construction may be optimistic given Lebanon's political paralysis and the security situation in Syria.

What to Watch

Formal approval from both Lebanese and Syrian governments, and any conditions attached to transit rights.
Qatari LNG production recovery: whether the damaged Ras Laffan trains return online and whether Hormuz shipping lanes reopen sufficiently.
The Arab Gas Pipeline's physical condition and security along the Syrian route, including any attacks or sabotage.
Lebanon's ability to negotiate payment terms and guarantees without further straining its economy.

Sources

Qatar Offers Lebanon 2 Gas Plants and 20 Years of LNG Piped Through Syria · Oilprice.com

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12 claims in this story checked against 1 source: 8 supported.

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Partly supportedHeadline: Qatar offers to build two power plants in Lebanon and supply LNG for 20 years via SyriaOilprice.com: “Qatar Offers Lebanon 2 Gas Plants and 20 Years of LNG Piped Through Syria”
Partly supportedSummary: the plan aims to resolve Lebanon's crippling electricity crisisOilprice.com: “Qatar is offering to take over Lebanon's power supply problem at no upfront cost to Beirut”
SupportedThe plan carries no upfront cost to BeirutOilprice.com: “at no upfront cost to Beirut”
SupportedQatar has proposed the program, according to a draft seen by Reuters, to build two gas-fired plants within three yearsOilprice.com: “A draft program seen by Reuters has Qatar building two gas-fired power plants within three years”
Partly supportedThe build-out will take three yearsOilprice.com: “the build-out could take three years if both governments approve it quickly”
Partly supportedPrivate diesel generators cover roughly half of demandOilprice.com: “Private diesel generators provided about half of the country's electricity at the start of 2026, according to a report cited by The National.”
SupportedPrime Minister Nawaf Salam said Qatar would finance, run and operate the projectOilprice.com: “Prime Minister Nawaf Salam said on Friday that Qatar would finance, run and operate the project”
SupportedQatarEnergy and TotalEnergies will jointly develop a solar plant as the first stageOilprice.com: “QatarEnergy and TotalEnergies would jointly develop a solar plant as the first stage”
SupportedTwo 825-megawatt combined-cycle gas plants, at Deir Ammar in the north and Zahrani in the southOilprice.com: “two 825-megawatt combined-cycle plants, one at Deir Ammar in the north and one at Zahrani in the south”
SupportedLebanon's economy is projected to shrink by 6% to 7% this yearOilprice.com: “Lebanon's economy is expected to shrink by 6% to 7% this year”
SupportedA consortium led by Qatar's UCC Holding signed concessions in November 2025 for 5,000 MW of generationOilprice.com: “a consortium led by Qatar's UCC Holding signed concessions in November 2025 for 5,000 MW of generation”
SupportedQatarEnergy CEO Saad al-Kaabi said last month that Qatar was producing a 'very minute' volume of LNGOilprice.com: “said last month that Qatar was producing a "very minute" volume of LNG”