Lebanon Businessnews News

Negotiations for LNG import kick off
Five companies will be shortlisted for final phase
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The Ministry of Energy and Water kicked off negotiations to import Liquefied Natural Gas. The gas will be used on the upcoming Floating Storage and Regasification Unit, a vessel used to convert liquid gas into a gaseous state. It will be transferred through the coastal pipeline to power plants, at a later stage.
“Companies are now required to answer all of our questions regarding the import of LNG,” said Zaher Sleiman, Oil and Gas Consultant at the ministry. The deadline for submission of answers is January 23, 2014.
The ministry will then choose the top five companies and hold a second phase of negotiations in order to sign contracts. “All interested companies that have so far contacted us are international as no local firm is specialized in this matter,” he said. The consultant on this project is Poten & Partners.
Based on the ministry’s timeline, the actual import of LNG would begin in early 2016. Sleiman said that negotiations will revolve around quantities, commitment level, and sources of gas.
Lebanon needs 1.3 million tons of LNG per year as of 2016 and this figure is subject to increase with the rise of demand, according to the ministry’s statistics.
The ministry also said that the winner to be awarded the contract to build the FSRU will be chosen next week.
Reported by Yassmine Alieh
Date Posted: Dec 06, 2013
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