Former US envoy calls for activation of Egypt-Lebanon gas deal as Syria sanctions lift

Deals are 'done and ready to go' after Donald Trump lifted Syria sanctions, Amos Hochstein says

Maintenance work is carried out on power generation transformers in Syria. The country is facing an energy crisis. Reuters

Former US energy envoy Amos Hochstein has urged the US and Lebanon to "activate" a deal to transport gas from Egypt to Lebanon through a pipeline in Syria, after the US lifted sanctions on Damascus.

Mr Hochstein on Monday night also called for electricity to be transferred from Jordan to Lebanon through Syria.

"Deals are done and ready to go," Mr Hochstein, who was previously the US special presidential co-ordinator for global infrastructure and energy security, said in a post on X.

He said making it a priority to fix the Syrian power grid "is the absolute best way" to help Syria and Lebanon. "Can’t begin rebuilding without access to affordable/reliable power," he added.

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Mr Hochstein’s post referred to a gas import agreement signed in June 2022 by Lebanon, Egypt and Syria to ship 650 million cubic metres of natural gas per year from Egypt to Lebanon via Syria, as part of US-backed efforts to ease Lebanon's electricity crisis. However, at the time, Egypt and Jordan privately voiced concerns that the project could breach US sanctions on Syria, including the 2019 Caesar Syria Civilian Protection Act.

Lebanon's electricity sector has been crumbling for about three decades amid a lack of investment. It has been kept afloat by costly and short-term fixes that have failed to provide round-the-clock electricity, despite repeated promises by politicians. Lebanon's economic woes have also exacerbated the power crisis, as the country can no longer afford to operate most of its power plants.

Mr Hochstein urged the countries involved to activate the deals after US President Donald Trump on Monday signed an executive order lifting sanctions on Syria, allowing the country to rebuild after a prolonged civil war. Mr Trump's executive order takes effect on Tuesday.

Mr Hochstein, who has held several government roles in Washington, has also spent time as a lobbyist and executive at a liquefied natural gas company. He is currently the managing partner of holding company TWG Global.

Syrian Foreign Minister Asaad Al Shibani said on X that the move by the US to lift sanctions on Syria would allow for "long-awaited reconstruction and development".

The removal of sanctions marks an economic reawakening and geopolitical repositioning for Syria, Arturo Bris, professor of Finance and director of the IMD World Competitiveness Centre, has said.

Several regional airlines have resumed flights to Damascus, infrastructure deals have been announced and the country's debts are being cleared.

In May, Syria signed a $7 billion deal with a Qatar-led business group aimed at doubling the country's power supply, in a series of moves to boost its postwar economy. The Syrian government signed an agreement with a consortium of companies led by Qatar's UCC Holding to add 5,000 megawatts to the national grid. The country faces a severe power crisis.

The lifting of US sanctions on Syria has reignited global investors' interest, with several major companies already establishing a foothold in the war-torn country's economy. In May, Dubai-based DP World signed an initial agreement worth $800 million to develop the port of Tartus.

Billionaire Emirati entrepreneur Khalaf Al Habtoor said in June that he was exploring new investment opportunities in the country.

Turkish companies, from banks to port operators and energy firms, are also lining up to grab their share of business opportunities arising from Syria’s $500 billion reconstruction effort.