NEWS
Yemen LNG venture finally given go-ahead
Seoul, Aug 30 (LNG journal)
- South Korean energy group SK Corp. said Tuesday the liquefied natural gas venture in Yemen's Gulf of Aden, led by French oil and gas major Total and involving Hunt Oil Co. of the US and others, has finally been given the go-ahead and will come on stream by late 2008.
The liquefaction plant, which will have two trains with a combined capacity of 6.7 million metric tons per annum, will be located at the port of Bal Haf on the southern coast of Yemen and construction contracts will be awarded in the coming days, SK Corp. said.
Natural gas will be supplied from Block 18 located in the central Marib region, around 180 kilometres east of the capital Sana'a. The gas will be transported to the liquefaction plant by a 38-inch, 320 kilometres-long pipeline.
Yemen LNG has signed three 20-year sale and purchase agreements with France 's Suez LNG Trading for 2.55m tonnes per annum, and with South Korea 's Kogas and Total Gas & Power for 2m tonnes per annum each.
The Yemen project is 43 percent owned by Total and 23 percent is held by the government's Yemen Gas Co. The South Korean companies, SK Corp. and Hyundai Corp., own 10 percent and 6 percent respectively. Hunt Oil Co. of the US holds a further 18 percent of the venture.
Under the agreements with Kogas, the South Korean utility will acquire a 6 percent interest in Yemen LNG in the near future, the statement added.
Suez LNG Trading, a subsidiary of Suez Energy International, formerly Tractebel Electricity and Gas, announced its Sales and Purchase Agreement with Yemen LNG on August 29.
Suez said its supply from the plant will primarily be destined for North America and would require five LNG carriers. The tender process for the shipping requirements is nearing completion, Suez said.
Suez LNG also owns a 10 percent stake in Atlantic LNG, with its liquefaction plant based in Trinidad and Tobago.
