Lack of reform, financial runs leaves Lebanon’s energy sector in limbo [Gas in Transition]

Lack of reform, financial runs leaves Lebanon’s energy sector in limbo [Gas in Transition]

The US-brokered maritime agreement between Lebanon and Israel is grounds for optimism, but further reforms are needed to kickstart offshore development and ease Beirut’s energy woes. [Gas in Transition, Volume 3, Issue 2] by: Gary Lakes

Lebanon in recent months has taken a couple steps that could get its long-in-limbo offshore hydrocarbon exploration and development programme on track. But the country’s political deadlock and crippled economy raise doubts whether any oil and gas that is found can be brought on stream. The needed institutional reforms will not take place until a new president is put in office – the post has been vacant since last year – and a new government is formed. At present, Najib Mikati is once again acting as caretaker prime minister. The dominance of the country’s politics by Iran-oriented Hezbollah, let alone the confessional political interests that traditionally controlled politics in Lebanon, has left the country shattered, with few foreign governments or international institutions willing to take it seriously. Co...