GOVT SIGNS MOU TO PROMOTE "YEMEN GAS CITY" PROJECT

SANA'A, Sept.09 (Saba) - In presence of Prime Minister Ali Mujawar,
Ministry of Oil and Minerals and the Gulf Gascities Ltd Company
signed here on Wednesday a memo of understanding for carrying out an
economic study to promote Yemen Gas City project.

The project includes industrial complexes for the different
gas-based industries among them petrochemicals industry, gas-power
plant and water desalination as well as the other gas-based
investment projects.

The study expected to be finished by 2010, composes of three parts,
the first part deals with the gas collecting points in the different
gas sites that may be discovered by the company, while the second
part represents in studying laying pipeline from Mabar area, Dhamar
province, to Hodeidah province, and the third part of the study
focuses on the gas industrial city.

The company's officials made it clear that the total expected cost
of the project is estimated between $15 billion to $20 billion,
while the work opportunities to be allowed by the project amount to
15,000 direct jobs and about 70,000 indirect jobs.

During his meeting with Chairman of Gascities Ltd Badr Jafar ,
Mujawar wished success for this project , affirming the country's
needs for suchlike investment projects which receive big support and
care by the political leadership and the government.

He noted the success achieved by Yemeni Liquefied Natural Gas (YLNG)
project scheduled to be inaugurated within the few coming weeks,
hoping that Yemen Gas City project follows in the successful steps
of the YLNG project.

The agreement was singed by Minster of Oil and Minerals Amir
al-Aydarus and Chairman of the Gascities Ltd Badr Jafar.

BA