LNG supply for Lebanon's power sector in light of the pending offshore gas discoveries and the world's falling oil prices

This paper investigates the viability of an LNG import infrastructure and a coastal pipeline interconnecting most of the countries' power plants. The analysis is performed in light of the pending offshore gas discoveries and the world's falling oil prices. The methodology used in this research is based on a probabilistic approach through the development of an integrated energy-economics appraisal-model that uses a probabilistic Fuel Demand Module (FDM) which is derived from a traditional production-costing approach. The developed energy model is interrelated to an investment feasibility model used to assess the financial feasibility of the terminal. This two-folded paper provides a proposal to concatenate an FDM to the traditional probabilistic production-costing model, which is an effective tool for the financial appraisal of a typical fuel infrastructure. The other fold is the technical and commercial aspects that are considered advantageous to the country's policy makers.