Sep 6, 2009

Yemen LNG says to start producing in "coming weeks"

Yemen LNG expects to start production from its new gas liquefaction plant in the "coming weeks", the company's chief executive said.

The first cargo was originally scheduled to be exported in August, but start-up problems, including leaking valves and minor glitches, delayed first production.

"Well we are in the start-up phase at the moment, we are working very hard and should see (production) in the coming weeks," Joel Fort said.

"We are not yet producing LNG but we are flowing gas through the first LNG train at the moment."

The Total-led Yemen liquefied natural gas (LNG) project in Balhaf, is expected to help boost economic growth in the country to nearly 8 percent, almost double last year's gross domestic product.

Other investors in the project include U.S.-based Hunt Oil and Yemen Gas Co, which own 17.2 percent and 16.7 percent, respectively.

The project has the capacity to produce 6.7 million tonnes of LNG for export from the Gulf of Aden port of Balhaf.

At the end of 2008, Yemen held 17.3 trillion cubic feet (tcf) of proven natural gas reserves, according to the BP Statistical Review.

No comments: