Yemeni-Iranian talks on energy field

TEHRAN, May 12 (Saba) - Deputy Foreign Minister Ali Muthana Hassan
has held talks here with Iranian Energy Minister Parviz Fatah on
mutual cooperation ties in the field of energy between the two
countries and means of boosting them.

Fatah is also the head of the Iranian side in the Yemeni-Iranian
Economic Committee. During their meeting, the two Yemen-Iranian
officials reviewed the results of the latest meeting of the joint
economic committee, especially in the energy field.

Fatah and Hassan pointed to the fast accomplishment of the Marib Gas
Turbine Power Station which being implemented by the Iranian Persian
firm according to a timetable agreed on.

The Marib Gas Station will begin operations by mid-2009 to put an
end to energy shortages, and to take an important step in the
country's development.

The project will save $1.5 million a day, which Yemen spends on
energy expenses for companies using heavy fuels, including diesel.

Furthermore, the project will save further expenses by converting
gas to generate energy. Yemen's electrical sector spends almost 60%
of its expenditures on oil derivatives, spending estimated at $1
billion a year.

The $49 million project should have been completed in February 2008,
but it has been delayed as a result of the embargo against Iran.

In November, President Ali Abdullah Saleh inaugurated the first
phase of a giant gas project in the Balhaf area of Shabwa province,
in which the French company Total is a main partner.

And recently, the Japan Liquefied Natural Gas Corporation announced
its intention to set up a project to export Yemeni natural gas.

Yemeni official in Electricity and Energy Ministry have said that
the repeated outages of power are a normal result of expansion in
demand that is increasing 10% annually in addition to approaching of
summer season in Yemen.

They also reiterated affirmation of the final date of opening the
Marib power station and put in operation next July.