Qatar Proposes Two 825-Megawatt Gas Plants and 20-Year LNG Deal for Lebanon, Draft Document Shows

Qatar has put forward a plan to build two gas-fired power plants in Lebanon and supply the country with liquefied natural gas for 20 years. The proposal is laid out in a draft document dated October 2026 and seen by Reuters.

The document is titled the National Integrated Energy Investment Program. It was prepared with input from both the Lebanese and Qatari governments and still needs approval from both. A person familiar with the matter said it is subject to amendment and that implementation could take three years if approvals come quickly.

What the draft proposes

The plan calls for two combined-cycle gas plants of 825 megawatts each, for 1,650 MW in total. One would go at Deir Ammar in the north, the other at Zahrani in the south. Both sites already host thermal plants that supply most of the few hours of daily power Électricité du Liban can deliver.

QatarEnergy would sign the LNG supply deal with Lebanon. Gas would arrive through two channels: a floating storage and regasification unit rated at 3.5 million cubic meters a day, and the Arab Gas Pipeline through Syria, with capacity of 4.5 million cubic meters a day.

The program goes beyond gas. It includes 800 MW of solar, 440 MW of wind, battery storage, and initial imports of 300 MW of electricity from Syria over two routes. The document says it covers "gas-fired power generation, LNG supply and regasification, renewable energy, battery storage, and regional electricity interconnections."

The plan assumes the existing pipelines needed to carry Qatari gas will be refurbished and that the network will be connected to Zahrani. Deir Ammar is already connected, according to L'Orient-Le Jour.

Who pays

The financing language is the part to watch. The document says the program "aims to attract private/project financing without upfront Lebanese public-budget capital expenditure; payment obligations and guarantees remain subject to negotiation."

That leaves the main question open. "No upfront cost" is not the same as no cost. Who guarantees the payments, and on what terms, has not been settled.

Lebanon's power sector is at the center of the country's financial collapse. It has added tens of billions of dollars to the national debt since the 1975-1990 civil war without delivering round-the-clock electricity. Private diesel generators fill the gap, at high cost to households and businesses and with toxic exhaust that hangs over Beirut. A report cited by The National put generators at about half of the country's electricity at the start of 2026.

Officials weigh in

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani visited Lebanon last week and publicly pledged to help revive the power sector. He gave few specifics.

Lebanese Prime Minister Nawaf Salam said on Friday that Qatar would finance, run and operate the project. He also said QatarEnergy and TotalEnergies would jointly develop a solar plant as the first stage.

Energy Minister Joe Saddi has held several discussions with his Qatari counterparts since taking office in February 2025, according to sources who spoke to L'Orient-Le Jour. Saddi and Qatar's Foreign Ministry had not commented on the draft when Reuters sought a response.

Qatar is already expanding its power business next door. In Syria, a consortium led by Qatar's UCC Holding signed concessions in November 2025 for 5,000 MW of generation, according to Oilprice.com: 4,000 MW of gas-fired combined-cycle plants and 1,000 MW of solar.

The gas has to get out first

The plan rests on Qatari LNG leaving the Gulf, and that supply is under heavy strain. An Iranian missile strike on Ras Laffan on March 18 knocked out two of Qatar's 14 LNG trains. 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, according to Oilprice.com's reporting. QatarEnergy has extended its force majeure on deliveries every month since early March.

The proposed 20-year deal would start years from now, so the current disruption may not define it. The draft does not address how supply would be secured if Hormuz stays constrained.

A history of stalled fixes

Previous attempts to overhaul Lebanon's grid have stalled amid political disputes and the interests of senior politicians in fuel and energy businesses, Clash Report noted. i24NEWS likewise pointed to internal political bickering as the reason earlier reforms went nowhere.

The Lebanese economy is expected to shrink 6% to 7% this year, according to Oilprice.com. A power supply deal that works would be a rare piece of good news for the country. A deal that leaves Lebanese taxpayers on the hook for guarantees would add to a debt load the sector already helped create.

The next step is approval by both governments. The draft's three-year timeline depends on that happening quickly, and the payment and guarantee terms have yet to be negotiated.