Lebanon Businessnews News
 

Matelec to construct six power substations
Onshore oil draft complete
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The Ministry of Energy and Water signed an agreement with Lebanon-based Matelec to establish six power substations and restore five others. The contract value is $37 million.

The new substations will have the capacity to handle 220 Kilovolts electric output. They will be constructed in Deir Amar, Deir Nbouh, Zouk, Zahrani, Tyr, and Bsalim. This plan forms the last phase of the emergency plan the parliament approved in 2011 to produce 700 Megawatts of power and establish a transport network.

Matelec was awarded the agreement after the Ministry had conducted the tender five times because there were no participants. The price was lowered by 18 percent, according to the Ministry.

The Ministry also accomplished a draft law that regulates onshore oil exploration and production. The onshore oil draft was prepared by the Petroleum Administration.

The draft highlights the importance of creating a sovereign fund where onshore oil revenues should be placed in. It calls for the establishment of a national company for oil exploration. The State will have the exclusive right of ownership, investment, and exploration and production of oil. The draft is designed to complement the offshore oil law. It regulates exploration and protects the environment and natural resources, public health, and safety.

“This draft has a direct positive impact on the process of oil transport, distribution, and refinement. It opens the door to a golden age by establishing transport companies, reviving refineries, and creating distribution channels,” said Sarkis Hleiss, General Manager of the oil facilities.


Reported by Yassmine Alieh
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Date Posted: Jan 28, 2014