Yemen Discusses Adjustments in LNG Prices

There are new arrangements for selling Yemeni LNG to the global market including tripling the prices and sending 15 shipments to the Korean market instead of the U.S. market, Oil and Minerals Minister said.

At a press conference Amir Al-Aidrous said the long-term contracts to sell Yemeni LNG were the best compared to similar projects implemented in the region because some countries sell their LNG through immediate shipments. So far, the Balhaf LNG Project has brought in suitable incomes since it was launched in late 2009 and from now on about US$16 million will be the increase in the price of a shipment.

70% of LNG is sold to the United States and the contracts are subjected to demand and offer and the prices included in the contracts can be reconsidered every five years, he said. Moreover, he noted South Korea had exempted Yemen from the fines imposed due to late shipments in 2009 and Yemen planned to reduce transport charges through using the Indian Ocean instead of the Swiss canal. The remarks came after President Saleh ordered this year to reconsider the contracts for selling LNG to South Korean companies. The order was triggered by reports the price in the agreements were much lower than global prices.- Yemen Post