Several Decisions in the Exportation of Liquefied Yemeni Gas [Archives:2001/49/Business & Economy]
The Supreme Council for Economic Affairs has received a case concerning the delay of exploiting the liquefied gas project and the current situation of the project. This project has been implemented for years, and its delay has resulted in many obstacles, specifically for foreign exports of Yemeni gas. During the meeting, the Council discussed the working paper presented by the Minister of Oil and Minerals, Rasheed Barabaa, which focused mainly on what had been presented in the Board of Directors meeting at the Liquefied Yemeni Gas Company. The Council has reviewed a number of the oil issues and options. This great concern has come as a result of the fallback of the national economy and the regression of oil revenues due to global changes in international oil markets. The Council has made decisions concerning the establishment of these projects, which will in turn support the states budget. The negotiation guidelines are entrusted to the Oil and Mineral Company in order to mandate the Ministry to show the governments attitude with regard to joint-stock companies to export the liquefied gas to foreign markets.
Yemen possesses more than 15 trillion cubic meters of oil reserves, which are entrusted to the American Total Company to develop foreign exports.
The financial crisis which hit the Asian markets has encouraged Yemen and concerned companies to postpone the Yemeni gas project until 2003. The gas company set up a committee in 1997 with the aim of marketing the sale of Yemeni gas and making long-term contracts with merchants and traders in international markets.
An source in the oil industry said that the liquefied gas could be exported to countries such as Japan, Indonesia, Malaysia, and Australia. Such projects will support the national economy after a long period of recession.
Consequently, the Supreme Council for Economic Affairs has decided to set up a committee chaired by the Governor of the Central Bank and specialized members of the Financial, Commerce, Planning and Developing Ministries. This committee will conduct a comprehensive study of the Yemeni economy and submit a proposal to the Supreme Council for Economic Affairs before the end of the year 2001.