The agreement allows for the generation of 5,000 megawatts of electricity through four gas-fired power plants.
The signing ceremony was attended by Syrian President Ahmed al-Shara and Washington's envoy to Damascus, Thomas Barrack.
In his speech, Syrian Energy Minister Mohammed al-Bashir said, "Today we are witnessing a historic moment that represents a turning point in the energy and electricity sector in Syria, as we rebuild the dilapidated infrastructure in this important sector."
He added, "This memorandum strengthens regional cooperation and integration in the energy sector and helps us stimulate clean and renewable energy projects."
Al-Bashir explained that "the investment is valued at $7 billion and will contribute to generating 5,000 megawatts, which will increase the number of hours of electricity supply and positively impact all aspects of life."
He pointed out that the investment will be made through "leading energy companies" within the framework of the global UCC Group, which includes companies from Türkiye, Qatar, and the United States.
He pointed out that the agreement includes the development of four gas turbine power plants in the areas of Deir ez-Zor (east), Mahardah and Zaizoun in the Hama countryside (central), and Trifawi in the Homs countryside (central).
He explained that electricity generation for those areas will have a "total capacity estimated at approximately 4,000 megawatts, using American and European technologies." The agreement includes the construction of a "1,000-megawatt solar power plant in the Rabi Valleys in southern Syria."
Ramez Al-Khayat, CEO of Qatar-based UrbaCon Holding, expects the project to provide more than 50,000 direct job opportunities and 250,000 indirect opportunities, which will boost the Syrian market.
Washington's envoy to Syria, Thomas Barrack, said, "Moments like this don't come along often, and all the US administration's efforts are in the interest of the new Syrian government." He described US President Donald Trump's decision to lift sanctions on Syria on May 13 as "bold."
On May 23, the US Treasury Department issued a general license providing "immediate relief" from sanctions on Syria, in line with Trump's decision.
Barak continued, "I convey to you President Trump's greetings and affirm his commitment to supporting the Syrian government."
The Syrian administration seeks to ensure a stable level of energy security, to prevent any disruption that could lead to instability and delay the country's development process.
According to 2015 statistics, Syria's proven gas reserves amounted to approximately 8.5 trillion cubic feet.
Average daily production of non-associated gas is approximately 250 million cubic meters, representing 58% of the country's total gas production. Associated gas, however, constitutes 28% of production, most of which comes from east of the Euphrates River.
It also seeks international and regional support to help it address the repercussions of 24 years of ousted President Bashar al-Assad's rule (2000-2024).
On December 8, 2024, Syrian factions took control of the country, ending 61 years of Baath Party rule, including 53 years of Assad family control.
On January 29, 2025, the new Syrian administration declared Ahmed al-Sharaa president for a five-year transitional period.
