OFFICIAL: PRICES FLUCTUATION CAN'T AFFECT LNG IN YEMEN

SANA'A, April 29 (Saba) – LNG in Yemen can't be affected by global price fluctuation, Director General of the Yemen LNG Company Francois Ravan has said.

In a press conference early Thursday at the company's headquarters in Sana'a, Ravan cited several reasons for that the company is away from the impacts of prices fluctuation saying it had signed long contracts with the main buyers based on diversity of selling and the reputations of the companies which can control gas prices globally.

The companies must be obliged to the contracts, he said.

Other reasons include that Yemen enjoys a good strategic position among gas markets, he said.

Ravan also said that Yemen's participation in the global conference on LNG that was held in Algeria last week introduced the company to the world.

At the conference, he reviewed LNG production in the country and the shipments exported to foreign markets.

About 22 shipments have been transported abroad since the company launched LNG production from the main plant in Balhaf, Shabwa, in October 2009, he said.

The firstfruits of LNG occurred through the main buyers KOGAS and Total and others.

This year the company plans to export over 84 shipments targeting European, American and Asian markets, he said.

He, furthermore, noted that the company had financed the special unit to produce domestic gas.

In March, Yemen boosted LNG production through launching the second train at the Balhaf plant.

With the launch of the second train, total production capacity reaches 6.7 million tons of LNG per year, equal to a hundred cargos to be delivered each year over 25 years.

'Total, France's second largest Petroleum Company and the world's fourth largest oil and gas group, is the main shareholder in Yemen LNG, with an interest of 39.62%, alongside state-owned Yemen Gas Company (16.73%), Hunt Oil Company (17.22%), SK Energy (9.55%), Korea Gas Corporation (6%), Hyundai Corporation (5.88%) and Yemen’s General Authority for Social Security and Pensions (GASSP, 5%).

FR