YGCC PLANS TO SET UP GAS-OPERATED INDUSTRIAL CITY IN HODEIDAH

HODEIDAH, Nov.14 (Saba)- The Yemen Gas City Company (YGCC) is planning to establish a gas-operated industrial city in the province of Hodiedah at cost of $ 20 billion.

The project was discussed on Saturday by Hodeidah Governor Ahmed al-Jabali and Director of Industrial Development Department of the Yemen Gas City Company Peter Sleky.

Al-Jabali made it clear that Hodeidah has more distinctive industrial and investment features, affirming the readiness of the local authorities to cooperate with investors during the implementation of investment projects.

The company's representative in Yemen Monder Faisel said that the gas city will create over 75000 permanent jobs, noting it will include light, medium and heavy industries, cement plants and power stations.

The UAE's Dana Gas and Crescent Petroleum have announced they signed a memorandum of understanding with Yemen to set up a "gas city" in the country.

The two companies said the Gascities Ltd, a joint venture between Dana Gas and its parent company Crescent Petroleum reached last September an agreement with the Yemeni government to investigate the development of its proprietary gas city concept within Yemen.

Gas cities are large, gas-fed industrial complexes housing petrochemical and heavy manufacturing plants. Dana Gas and Crescent plan to build at least four in the Middle East and North Africa, including in Egypt.

The project could attract US$15-US$20 billion worth of investments over 25-30 years, doubling Yemen's foreign investment and creating up to 90,000 jobs.

Yemen is hoping that exports of superchilled gas will offset the impact of falling oil revenues on its fragile economy. At the end of 2008, Yemen held 17.3 trillion cubic feet of proven natural gas reserves, according to the BP Statistical Review.

"The Gas City concept has the potential to promote significant economic activity in Yemen and bring substantial foreign investments directly into our local markets," Yemeni Oil and Mineral Resources Minister Amir al-Aidarus said.

SA/YA