Do the security tensions between Israel and Hezbollah herald the end of the Lebanese gas project? According to Lori Hitian, a Lebanese gas and oil expert, this is a very possible scenario.
As you remember, the French company "Total" announced that it will start drilling in the Lebanese gas field in September, but the expert believes that if the tensions continue, the French company will announce that this endangers the project and announce the postponement of the start of the activity.
Hitian does not rule out that Total will "extend" the postponement for three years - the period of the contract with the Lebanese government, thus renouncing it and not entering the project at all.
The expert explained that Total is in a completely different situation today compared to the situation at the time of signing the agreement with Israel. According to her, the costs are higher due to the increase in insurance prices. Hitian added that even if Total continues the project and gas is produced, the state's revenues will be smaller due to the increase in costs.
More broadly, the expert noted that the rising tensions will reduce the interest of other foreign companies to invest in other potential gas fields in Lebanon.