LNG PRODUCTION BEGINS IN YEMEN, EXPORTS EXPECTED IN WEEKS

SANA'A, Oct. 15 (Saba) - The Liquefied Natural Gas Company announced
on Thursday the start of producing LNG at the Balhaf Plant in
southeastern Yemen.

The company said in a statement that the first shipment of LNG is
expected to be exported within the next few weeks, with Yemen to be
among the countries exporting LNG.

Minister of Oil and Minerals Amir Salim Al-Aidrous commented on the
launch of LNG production saying it was a major accomplishment and an
important event that translated the effective partnership between
Yemen and international shareholders.

The $ 4.5 billion Balhaf LNG Plant is deemed one of the biggest
investments in Yemen's history as it was designed to pump
natural gas from the block 18th in Mareb, in the east, through a
320-km-long pipeline to the Liquefaction Plant in Balhaf, Shabwa,
along the Gulf of Aden.

LNG production has now started with the first train, while the
second train is still under construction.

Yemen will export 5.7 million cubic meters of LNG a year.

The company will export produced LNG quantities by the plant under
three 20-year contracts signed with the French Total Company, the
Swiss GDF Company that will carry shipments to the U.S., and the
Korea Gas Corporation (KOGAS) which will transport LNG to South
Korea.

The construction of the project started in 2005, creating almost
10.000 jobs at the liquefaction plant site and 3000 jobs during the
construction of the pipeline.

The company attracted and qualified local employees for three years
to run and operate the project and now seeks to Yemenize the
workforce at various technical and administrative sections by 90
percent to help promote economic development in Yemen.

Over the next 20 years, the project is expected to bring in $ 30-50
billion that will help accelerate development and attract more world
companies to invest in the country.

Total is the leading shareholder of Yemen LNG with a 39.62%
interest, alongside the state-owned company Yemen Gas Company
(16.73%), Hunt Oil Company (17.22%), SK Energy (9.55%), Korea Gas
Corporation (6%), Hyundai Corporation (5.88%), and GASSP1 (5%).

FR