What motivated the decision to establish an LNG project in Yemen?

The launch of Yemen LNG comes at a time when the international demand for gas has grown tremendously. Gas is a clean and cost-effective energy source. It is used for power generation as well as domestic heating.

As the country’s largest-ever industrial investment (budgeted at around US$ 4.5 billion), the decision to launch the Yemen LNG project in August 2005 was an important milestone for both the Government of Yemen and the Yemen LNG shareholders. The location of Yemen is strategically advantageous allowing accessibility to all Liquefied Natural Gas (LNG) markets, both in the Asia Pacific basin as well as to expanding markets on either side of the Atlantic. Yemen has been able to take advantage of the increase in gas demand by initiating the construction of an LNG plant in order to commercialise and export associated gas in the form of LNG to markets in Korea, Europe and the United States.

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