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.