27 November 2010
The Yemen LNG company plans to boost production to 6.55 million tons in 2011 from 5 million tons this year, Francois Rafin, General Manager of Yemen LNG Company, said during press conference held last Sunday on the occasion of the first anniversary of YNLG's first shipment of LNG from Yemen.
The company diverted 35 out of 85 cargoes to the Asian market because of higher price in 2010 and will do the same in 2011.
"We are trying to catch a better price by diverting to Asia and this will improve the revenues of the Yemeni government," Rafin said.
Yemen, the poorest Arab country, has started to export its natural gas as crude oil production, the source of 75 percent of its income, declines. Oil output may drop to 260,000 barrels a day this year from 440,000 barrels a day in 2001, according to U.S. Energy Department data.
Rafin said Yemen has so far this year exported LNG shipments to ten countries which buy LNG regularly including Chili, Mexico, England, Spain, Kuwait, India, Japan, and China.
"These countries put our company as one of their favorite clients, providing it with the opportunity to increase sales prices and to continue building its reputation worldwide."
"What distinguishes the Yemeni LNG Project is that it is integrated from the pipelines and gas fields at block 18 in Marib to gas tankers and exporting ports, and this helped the company become credible and well known," he said.
Rafin continued saying, "The Yemen LNG Company is currently building a unit for extracting domestic gas at block 18 in Marib Province. The unit is the first of its kind in the country in 20 years and will help increase domestic gas production by 12000 barrels a day," Rafin said, pointing out that the company is also considering the construction of new units for domestic gas storage in Marib.
The company would build a gas sub-pipeline running to Marib to Ma'aber town, Dhamar, to feed the power station there. 93 percent of Yemeni LNG's sales are made in line with daily global prices, he said, adding that only 7% of the sales, mainly bought by KOGAS, are being traded under a fixed-price contract to protect Yemen and the company with respect to the Asian market's prices.
About 85% of the current staff of the company consists of Yemeni employees, he said.
The Yemen LNG company plans to boost production to 6.55 million tons in 2011 from 5 million tons this year, Francois Rafin, General Manager of Yemen LNG Company, said during press conference held last Sunday on the occasion of the first anniversary of YNLG's first shipment of LNG from Yemen.
The company diverted 35 out of 85 cargoes to the Asian market because of higher price in 2010 and will do the same in 2011.
"We are trying to catch a better price by diverting to Asia and this will improve the revenues of the Yemeni government," Rafin said.
Yemen, the poorest Arab country, has started to export its natural gas as crude oil production, the source of 75 percent of its income, declines. Oil output may drop to 260,000 barrels a day this year from 440,000 barrels a day in 2001, according to U.S. Energy Department data.
Rafin said Yemen has so far this year exported LNG shipments to ten countries which buy LNG regularly including Chili, Mexico, England, Spain, Kuwait, India, Japan, and China.
"These countries put our company as one of their favorite clients, providing it with the opportunity to increase sales prices and to continue building its reputation worldwide."
"What distinguishes the Yemeni LNG Project is that it is integrated from the pipelines and gas fields at block 18 in Marib to gas tankers and exporting ports, and this helped the company become credible and well known," he said.
Rafin continued saying, "The Yemen LNG Company is currently building a unit for extracting domestic gas at block 18 in Marib Province. The unit is the first of its kind in the country in 20 years and will help increase domestic gas production by 12000 barrels a day," Rafin said, pointing out that the company is also considering the construction of new units for domestic gas storage in Marib.
The company would build a gas sub-pipeline running to Marib to Ma'aber town, Dhamar, to feed the power station there. 93 percent of Yemeni LNG's sales are made in line with daily global prices, he said, adding that only 7% of the sales, mainly bought by KOGAS, are being traded under a fixed-price contract to protect Yemen and the company with respect to the Asian market's prices.
About 85% of the current staff of the company consists of Yemeni employees, he said.
© Yemen Observer 2010
