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January 26, 2016 | 27 Pages | English | Bassam Fattouh and Laura El-Katiri
Lebanon’s Gas Trading Options

The successful development of Lebanon’s offshore gas resources could turn Lebanon into a self-sufficient producer and a potential exporter of natural gas. Central to the government’s objectives of maximizing economic gain from the development of Lebanon’s offshore gas reserves and providing the right incentive structure for international oil and gas companies to develop these resources will be decisions on whether to export part of Lebanon’s hydrocarbon wealth, what share of reserves should be earmarked for export, and how to identify and secure export markets for natural gas.
This paper provides an introduction to Lebanon’s available options for the monetization of its expected offshore gas resources. While decisions concerning the destination of Lebanon’s eventual hydrocarbon wealth—if and when this materializes during the 2020s—are key to putting the right policy framework in place, Lebanon will also need to consider interim solutions in order to secure gas for its domestic energy market until the country’s own offshore gas production is able to supply the domestic market.