Bids for LNG terminals opened, but no winners declared yet

The Energy Ministry has opened bids for floating liquified natural gas terminals that form an important part of Cabinet’s new energy plan, though no winners were declared almost a month later.

Zaher Sleiman, an advisor to the Energy Minister who has been overseeing the project, told LOGI that the ministry would still require some time for winners to be announced, though he did not say how long.

The Energy Ministry is currently evaluating the financials of the respective bids, solicited for the construction of three LNG terminals, known as FSRUs. 

Bids were put forward by 6 entities.

Once the ministry selects a winner or winners, the project can move towards the implementation phase. 

The FSRUs would supply Lebanon’s power plants with natural gas, a cheaper and less polluting fuel than the heavy fuel oil currently being used. 

Running power plants on natural gas is an integral part of the government's new energy plan, which aims to end the yearly deficit at state-run Electricite du Liban of between $1.5 billion and $2 billion. In July, the ministry launched pre-qualification for two power plants to be constructed during the first phase of the plan. 

Zaher Fawwaz, who is affiliated with Mitsubishi, one of the companies that has expressed interest in the power plan, said that companies should know the fate of the FSRU tender before putting forward bids. “It should be clear to companies how they can fuel the power plants,” Fawwaz said.

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