Second train of Yemen's LNG plant comes online

The second train of Yemen's liquefied natural gas plant has come online, boosting the impoverished country's production capacity to 6.7 million tonnes of LNG per year, state media reported yesterday.

Production at the second train of the liquefaction plant at Balhaf on the Gulf of Aden began on Friday, said the Defence Ministry's 26sep.net news website.

The first liquefying unit began operating on October 15 and the maiden shipment of LNG left Yemen's shores on November 7.

The $4.5 billion (Dh16.5bn) project, involving a 320km gas pipeline from Maarib in eastern Yemen, is the country's largest ever investment.

"The future of Yemen is promising in terms of gas," the website quoted Oil Minister Amir Al Aydarus as saying.

With the second train, Yemen's production of LNG will gradually increase to 6.7 million tonnes per year, said Francois Rafin, Director General of Yemeni Liquefied Natural Gas, of which French Total owns a 39.6 per cent stake.

Eighteen shipments of LNG have been exported so far, to South Korea, the United States, China, Spain and Mexico, Total said in a statement.

According to Rafin, about 85 shipments will be exported in 2010 and between 100 and 105 in 2011.

He has previously estimated that over 25 years, the Balhaf project should generate between $30bn and $40bn in revenue.

Yemen, the poorest country in the Arab World, produces about 300,000 barrels of oil per day, but production is dropping by five percent annually.

Yemen has 259 billion cubic metres of proven natural gas reserves.

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