LNG Project [Archives:2006/975/Letters to the Editor]

August 24 2006

By: S.A. Abdul Wahab
This letter has reference to the interview by the General Manager of YLNG Co. published in your issue of July 15,2006. First and foremost a close analysis of the YNLG Project shows that our country and the Government of Yemen would stand to loose billions of dollars in income realised from the sale of the country's natural gas in the form of LNG. The Governments (YGC) share of the profits from the sale of LNG is only 26% instead of about 70% as is in the case of other countries like Qatar etc. This decreased share of the Government translates into a loss of revenues amounting to billions of dollars during the 25-year life of the Project.

Needless to say that such a huge loss to the Government of Yemen is against the country's national interest and economies security. Moreover if this Project goes through in its present form it will deprive our country of the much need natural gas which is desperately needed by our expanding people and growing industries. These natural gas reserves are our national heritage and are irreplaceable once they are

depleted. Does it mean that we have to pay in dollars for importing the required gas in future from other countries? Yes, exactly.

I think we should urge the present Government not to submit to this robbery of our natural resources by the foreign Multinationals whose only interest is to maximise their profits and exploit our mineral wealth for their benfit. It is time for the government and the people to wake up and protect our nation's interests before it's too late. I hope it is listening.

S.A. Abdul Wahab

Sanaa, Yemen

[email protected]