Liquid natural gas project will cost $3 billion, Baraba’a [Archives:2005/853/Business & Economy]

June 23 2005

Mahyoub Al-Kamaly
Yemeni Minister of Oil and Minerals announced that the project of liquid natural gas will cost the government around $3 billion to be spent during implementation of the project that may take up to five years.

In his inaugural speech at the special workshop on the project of liquid natural gas, Dr. Rashid Baraba'a stressed the importance of the project and the revenues it is expected to add to the national economy, pointing out that the annual production of the project will come at 6.7 million tons.

The top officials of oil and minerals in Yemen said that around 16.3 trillion cubic feet is the general reserve of gas in Yemen.

Concerning components of the project, Dr Baraba'a indicated the establishment of public facilities of oil blocks in Marib and stretching the 320km-long gas pipe from Marib to Shabwah, as well as the establishment of cisterns and sea tongues at the import port in Bilhaf.

With respect to the search for world markets for the Yemeni gas, the Minister of Oil and Minerals confirmed that his government is due to sign the purchase of 7 million of the project's production. The first carriage will be delivered to a Korean company in December 2008 while a US company will get its carriage in June 2009.

The Yemeni Parliament agreed upon five oil contracts between the Ministry of Oil and Minerals and 7 foreign companies, in addition the General Corporation for Oil and Gas in blocks 69, 70, 71, 72 and 73 located in Shabwah and Harmout.

The Parliament approved of the contracts after the Undersecretary of the Ministry of Oil and Minerals pledged to abide by recommendations of the Oil and Minerals Committee's report.

The MPs gave orders to the government not to sell any shares to the General Corporation for Oil Minerals, one of the partners covered by the agreement, unless there is an approval from the Parliament and to monitor activities of the operating companies to protect the environment from pollutants.