YEMEN LNG STARTS PRODUCTION OF LNG PROJECT

BALHAF, Oct. 15 (Saba)- Yemen LNG Company started on Thursday the production of Liquefied Natural Gas (LNG) from its liquefaction terminal in Balhaf on the Gulf of Aden, eastern Yemen.

Oil and Minerals Minister and Yemen LNG Board Chairman Amir al-Aidarous said that the start of LNG production from the LNG terminal in Balhaf is a major milestone achievement and is the outcome of a strong and successful partnership between the Yemeni government and the project international shareholders, enjoying the full and direct support of the political leadership of Yemen for such a major strategic project which we consider a success story ought to be followed.

In a press release, the company said that the Yemen LNG project is the largest and most important investment ever made in Yemen with an investment of around US$ 4.5 billion.

It consists of supplying gas from Block 18, located in the Marib region in central Yemen, through a 320 kilometres dedicated pipeline to the LNG plant located at the port of Balhaf on the southern coast of the country.

The plant started production with the first train while the construction of the second train is being completed. The total production capacity will reach 6.7 million tonnes of LNG per year.

Launched in August 2005, the project shareholders are TOTAL (Project Leader) (39.62%), Yemen Gas Company (16.73%), Hunt Oil Company (17.22%), SK Energy Co., Ltd. (9.55%), Korea Gas Corporation – KOGAS (6.00%), the General Authority for Social Security and Pensions of Yemen (5.00%) and Hyundai Corporation (5.88%).

Yemen LNG has committed the guaranteed Plant capacity under three 20-year Sales and Purchase Agreements with three main buyers; Total Gas and Power and GDF Suez for the North American Market; and KOGAS of South Korea.

During plant construction, Yemen LNG supported the local economy by sourcing several thousands jobs amongst the local population.

This involved over 10,000 people in Balhaf, Shabwa governorate, and almost another 2,000 along the 320-km pipeline. Yemen LNG selected and trained the local technical and administrative teams in charge of managing Yemen LNG.

Through a three year specific training programme at both Sana’a and Balhaf, skills were being transferred to Yemeni employees.

YA