Yemen LNG Halts Production

Yemen LNG has stopped all production and exports amid deteriorating security situation in the region, news agency Bloomberg reported Tuesday.  

“Due to further degradation of the security situation in the vicinity of Balhaf, Yemen LNG has decided to stop all LNG producing and exporting operations and start evacuation of the site personnel,” the news agency quoted from a statement released by the company. “The plant will remain in a preservation mode.”

Fighters seized posts outside the city of Balhaf in southeastern Yemen near the plant after soldiers fled, Bloomberg quoted Abu Bakr al-Awlaki, a local resident, as saying.

The plant has a capacity of 6.7 million metric tons a year.

The reserves within the Marib area which are currently dedicated to the LNG project include 9.15 trillion cubic feet (TCF) of proven reserves.

The project has three long-term sales contracts with GDF Suez SA, Korea Gas Corp. and Total SA.