Yemen LNG

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Yemen LNG is a 'natural gas liquefaction project in Balhaf, Yemen (48.1802°E 13.9854°N).

Contents

[edit] History

Yemen LNG Company was incorporated in 1995, but in 1997 the development of the LNG project was hit by the Asian economic meltdown.[1][2] The project was launched only in August 2005 after signing three LNG supply contracts.[3] On 29 October 2007, Yemen LNG and Yemen state-owned oil and gas company Safer Exploration and Production agreed a 20-year contract, according to which Safer will grant the LNG plant with supply up to 12.5 billion cubic meter (bcm) of gas per annum from Yemen's Marib basin Block 18.[4]

[edit] Technical description

The project will comprise new and existing upstream gas processing facilities including a transfer line linking processing units, a new spur-line to transport gas to the Ma’bar area and a 320 kilometres (199 mi), 36 inches (910 mm) new main pipeline, which will connect the gas processing facilities to the LNG plant in Balhaf. The plant will consist two LNG trains with the total capacity of 6.7 million tonnes per annum. The contractors to build the LNG trains are Technip, JGC, and Kellogg Brown & Root.[5] The project will be one of the country's first big project financing with total cost of US$4 billion, involving US$3 billion in debt being raised from a syndicate of banks.[6][7] Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citigroup, ING Group, Royal Bank of Scotland, Société Générale, and Sumitomo Mitsui Banking Corporation are the initial mandated lead arrangers and bookrunners on a loan.[8]

The LNG plant was expected to start up in December 2008, but it is speculated that it could delay until 2009.[9]

[edit] Project company

The consortium is led by Total S.A. (39.62%) in cooperation with Hunt Oil (17.22%), Yemen Gas Company (YGC; 6.73%), SK Corp. (9.55%), Kogas (6.00%), Hyundai Corporation (5.88%), and the General Authority for Social Security & Pensions of Yemen (5.00%).

[edit] LNG exports

Yemen LNG has SPAs to supply:

All SPAs last from 2009-2029.

[edit] References

  1. ^ "MOU Signed Between Yemen LNG and BG for Pipavav Project", BG Group, 1998-05-05. Retrieved on 2008-02-15. 
  2. ^ Peter Willems. "Yemen LNG is optimistic about the future", Yemen Times, 2004-09-27. Retrieved on 2008-02-15. 
  3. ^ "Yemen LNG Development Launched", Rigzone, 2005-08-29. Retrieved on 2008-02-15. 
  4. ^ "Yemen Safer to conclude LNG gas deal end Nov-exec", Reuters, 2007-10-29. Retrieved on 2008-02-15. 
  5. ^ Nassir Shirkhani. "Yemen LNG on starting blocks", Upstream Online, 2006-12-04. Retrieved on 2007-08-05. 
  6. ^ Christopher Mangham. "RLPC-Yemen LNG selecting banks for project loan-bankers", Reuters, 2008-02-13. Retrieved on 2008-02-15. 
  7. ^ "Yemen LNG players line up lenders", Upstream Online, 2008-03-07. Retrieved on 2008-03-07. 
  8. ^ Eric Watkins. "Total-led Yemen LNG arranges LNG project financing", Oil & Gas Journal, 2008-03-10. Retrieved on 2008-03-11. 
  9. ^ James Herron. "LNG Project Delays Set to Lift 2008 Global Gas Prices", Downstream Today, 2008-02-07. Retrieved on 2008-02-15. 

[edit] External links