08 June 2010
Speech by Francois Rafin, General Manager of Yemen LNG Company,on the occasion of Yemen LNG Inauguration Ceremony, Balhaf 5 June, 2010.

"Your Excellency the Prime Minister, Members of the Government, Ambassadors, Chief Executives, Members of Parliament, Governors, Representatives of Mareb and Shabwah, distinguished guests and colleagues from the shareholding companies, from the industry and from the media.

On behalf of the Yemen LNG company I am pleased and honored to welcome you on your LNG plant for this Inauguration Ceremony.

Yemen LNG Company unites Yemeni, French, American and Korean shareholders. These are YGC, GASSP, HUNT, SK Energy, KOGAS, Hyundai and TOTAL, the technical leader.

Since 2005, 105 million man hours were worked to upgrade the block 18 upstream facilities, to lay a 320 km 38 inch pipe through the Marib and Shabwah desert, to build the 6.7 million ton per annum liquefaction plant, to construct the deep water port and a fleet of 160,000 cubic meter LNG carriers that proudly fly Yemen colors on the oceans.

Our safety record beats the Oil and Gas Producers world average.
The environment was well preserved in the desert and at shore. Transplantation of corals at Balhaf was a world premiere.

Since 15th October 2009, the first train produces LNG with 89% availability. The second train, that was delivered one month ahead of time on 1st April 2010, already has 91% availability.

These are world best initial performances.

This success tells the world of the capability of ten thousand Yemeni staff and of Yemeni contractors who joined their efforts together with TOTAL, the technical leader, and with leading international contractors including Spie, Technip, JGC and KBR

Yemen LNG has stayed in budget, better than any other LNG project in the world in the same period.

After the gas-in of the upstream phase 1 at Mareb this 2nd June, our production is now ramping-up to maximum capacity. Our 2010 production is on a safe course to reach the budget.

29 LNG carriers have been loaded to date and the rhythm is now two cargoes per week. Destinations include the US, Korea, Mexico, Spain, Great Britain, India and China.

Yemen LNG benefits of the security of diversified long term contracts with 3 strong gas buyers, Total, Kogas and GDF-Suez. In the middle of the gas bubble, that means a temporarily oversupplied market, we are exceptionally active and very effective in optimizing our LNG sales price by means of diversions to Europe, China and India.

Yemen LNG’s 4.5 billion dollar investment with 2.8 billion dollar international loans clearly demonstrates that Yemen can attract international investors.

Yemen LNG is an industrial, commercial and financial success on the world stage.

Benefits also extend to the region. 60% of the workers here at Balhaf originate from Shabwa, Hadramout and Mareb. There are new schools
and clinics, new water wells and dams, fish aggregation devices, more beekeeping and agriculture programs… Sea water desalination and power distribution are also projected.

Meanwhile Yemen LNG, Hawk and SAFER now construct the first LPG plant in Yemen since 20 years that will increase the LPG extraction capacity by one third in 2011.

Indeed LNG exports mean more LPG for the Yemeni consumers.

LNG is a clean energy with solid perspectives of growth for the next ten years. With Yemen LNG, the country holds its launching platform to valorize future gas discoveries in Yemen.

I would like to end this speech by expressing our sincere appreciation to our staff, our contractors, our clients and our shareholders, with a particular mention for TOTAL the technical leader.

I shall thank the governors, the Ministry of Oil and Minerals and all the government bodies. Your prompt and wise settlement of all the usual difficulties that a gigantic project meets anywhere in the world, is the secret for the best performance of Yemen LNG.

I shall recognize the Ministry of Defense, the 107th and 21st Brigade, the 2nd Navy Brigade and the Navy for ensuring our security on land and at sea.

Finally I would like to congratulate Your Excellency the Prime Minister. I would like to thank you for supporting this project and for encouraging us. We are very honored and grateful Your Excellency. On behalf of all present, please accept this souvenir of this great day.

Choukran ghezilan."