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Arabia Felix Magazine LNG Deal - It’s a big deal - In fact it’s the biggest deal Yemen has ever seen!! By January 1, 2006, 01:06
In the end, it will supply Yemen with one of the region’s largest natural gas liquifaction plants. In the short term, it will supply more than 3000 jobs and countless opportunities. Joel Fort, the managing director of Yemen LNG says the projects long term value for Yemen, over twenty years of production, is likely to be somewhere in the range of 17 billion dollars. Mr. Fort is optimistic: he sees good jobs for Yemenis over the long term, plus significant compensation for the local communities effected by new construction and traffic. The exact nature of this compensation is to be determined by a community consultation project that will investigate the priorities of the affected communities. Whether it is hygiene, education, or health care, says Mr. Fort, Yemen LNG stands at the ready. Yemen will be an important supplier of natural gas for America and Asia. Its name is coming up again and again as an important player on the international scene. The Yemen LNG shareholders Yemeni government: (23.10%) Total: (42.9%) Hunt Oil Company: (18%) South Korea’s SK Corporation: (10%) Hyundai Corporation: (6%) They are expected to be joined soon by KOGAS following the completion of their entry into the partnership in the framework of their purchase of gas from Yemen LNG. The plant will export some six and a half million tons annually to the United States which is taking two thirds of the export and Korea, which is taking one third of the export. For years, Yemen’s 16.9 trillion cubic feet of proven gas reserves have sat idle and oil companies have been re-injecting the by-product at great cost. Now, Yemen has the means to increase its gas potential, giving an enormous boost to the country’s economy. The harbour at Balhaf was chosen for its optimal location on the Yemeni coast. It also happens to have a natural ly deep harbor and generally low geo-technical risk. Meaning, engineering studies have demonstrated that there is minimal risk of natural disturbances in the neighborhood such as a Tsunami, for instance, or possibly an earthquake. It can accommodate large capacity LNG tankers without the need for massive dredging or a huge breakwater. It will also have minimal environmental impact with a low effect on the coastline. None of the partners could have hoped for a more suitable location; the site offers easy access to markets in India, the Far East, Europe, and the Americas. The country’s strategic location, midway between East and West guarantees that YLNG should be a competitive producer in any market. When fully operational, the plant will create some 600 jobs and training programs will be set up to ensure that Yemenis benefit in the long term. In the meantime, some 15,000 technicians and workers will put the project in motion. At the same time, the government is developing plans to build gas-fired power stations and is discussing a blueprint for the creation of an associated petrochemical industry. Officials say the project will bring economic and social benefits to the residents along the pipeline route. Copyright © 2005 - 2007 Arabia Felix. http://www.arabia-felix.com |
