15 October 2009
15 October, Sana’a – Yemen LNG announces that on 15 October 2009 the Company started producing Liquefied Natural Gas (LNG) from its liquefaction terminal in Balhaf, on the Gulf of Aden. Yemen LNG’s first cargo is scheduled in the few coming weeks.

“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”, declared HE the Minister of Oil and Minerals and Yemen LNG Board Chairman, Mr. Amir Al-Aidarous.

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.

Support to Local Growth

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, Shabwah 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. Yemen LNG aims to reach 90% of Yemenisation of its local manpower working in all fields of operation, and contributing significantly to the economic development of Yemen.