Lebanon signs US$360 million power deal

Electricity-lebanonThe Lebanese government has signed a US$360 million three-year contract with Turkish firm Karkey Karadeniz Elektrik Uretim (KKEU) to lease electricity-generating ships

Under the terms of the agreement, the first barges are due to arrive within 120 days and are expected to generate 270 megawatts (MW) of electricity.

Depending on whether the government utilises the power ships to substitute some of the country’s plants scheduled for extensive repairs, Lebanon could see electricity rationing fall by one to two hours a day.

Lebanon’s current electricity production stands at around 1,500MW, while demand stands at above 2,400MW.

The power ships would produce energy at rates of almost US$0.06 per kilowatt hour, significantly less than in Lebanon’s outdated plants.

Lebanon’s Ministry of Energy estimates put the country's current energy costs at no less than $0.17 per kilowatt hour.

Turkey has a growing interest in Lebanon’s energy sector, the ambassador said, citing promising prospects for cooperation in the country’s offshore oil and gas sector.

“We hope to realise the project quickly and contribute to reinforcing relations between Lebanon and Turkey,” chairman of KKEU, Ohan Karadeniz said.

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