Beirut: Lebanon will offer tenders next month for the construction of its first pipeline for liquified natural gas, part of a strategy to revamp the country's power industry and curtail electricity outages.
The energy ministry is completing preparations to invite companies to bid for work on the pipeline, which would link power stations along the country's coast, said the minister's senior adviser, Raymond Gajar.
The ministry will offer other tenders later for related facilities, including a terminal for receiving shipments of imported LNG.
"We plan to have a working LNG terminal by 2012," Gajar said on Thursday. A ministry plan for overhauling the energy industry, approved by the government in June, urges power plants to burn less heavy fuel oil and diesel and to use less-polluting LNG.
Offshore deposits
The plan also emphasises a need to explore for offshore gas deposits, increase power-generating capacity, restore two refineries that are closed and upgrade the state electricity company, which now loses more than $1.5 billion (Dh5.5 billion) a year.
Lebanon suffers from blackouts lasting up to 15 hours a day, and 25 per cent of the electricity it generates is lost to theft, tampering and customer non-payment, Gajar said. "Invitation to tender for the pipeline will be before the end of the year. It should be in November."
The ministry plans separate tenders for supplies of LNG and a terminal to receive imports of the fuel. It doesn't expect to be able to produce offshore gas for several more years so is planning to import LNG, possibly from Qatar, the world's biggest producer of the fuel, Gajar said.
In addition, about 64 local and foreign companies are seeking prequalification to participate in a tender for a privatised "distribution system" for the state electricity company.
