Yemen LNG Ground breaking ceremony 24th September 05 [Archives:2005/882/Local News]

October 3 2005

Shabwah 24th Sept.)Dr. Rasheed Baraba, Minister of oil and minerals and Mr. Ali Al-rassas, governor of Shabwah inaugurated the ceremony of marking the construction works on the 24th of Sept.05, in Balhaf for Yemen liquefied gas east of Sana'a.

The government on The 13th of September gave approval of the beginning of the work in Balhaf. The archeological survey in the site started immediately. Preparation of the shore site and environmental processes, which were submitted to authorities on the 20th of Sept., is now proceeding.

Yemen LNG has signed three long- term (20 years) sales and purchase agreement for the plant's output.- one with Suez LNG trading for 2.5 million metric tons a year , one with Kogas for 2 million metric tons a year and one with Total gas & Power ltd. for 2 million metric tons a year.

Yemen LNG shareholders are the Yemeni government, presented by Yemen Gas company (23.10%), Total 42.90%, Hunt Oil Company (18%), South Korea's SK Corporation (10%) and Hyundai Corporation (6%).

Under the agreements with Kogas, the utility will acquire a 6% interest in Yemen LNG in the near Future. The project is expected to furnish 10.000 jobs.