Yemen LNG Company will divert 35 LNG shipments scheduled for the U.S. markets in 2011 to Asia because of higher prices there, General Manager has said.
At a press conference on its foundation anniversary on Sunday, Francios Rafin said the company should take advantage of the difference of the prices in both continents.
Next year, the production will increase from 5 million metric tonnes to 6.5 million metric tonnes, and our strategy is to deliver 35 meant for the U.S. to Asian markets, he said.
No security reasons behind the plan and lower prices in the U.S. are the only reason, he told reporters.
The remarks coincided with the visit of a Yemeni delegation to S. Korea to hold talks over the reconsideration of the price of LNG exported to the country.
Head of the delegation, Deputy Minister for Oil and Minerals, Abdul Malik Alama, said on Sunday the delegation will try to reach an agreement with S. Korean officials for a suitable price of LNG in line with global prices.
President Saleh ordered this year to reconsider the controversial contract signed with KOGAS after reports said the price under it was far lower than the global LNG prices.
This month, Rafin said in 2010 the company exported LNG cargoes to ten world regular importers including Chili, Mexico, England, Spain, Kuwait, India, Japan and China.
93 per cent of Yemeni LNG cargoes are sold in line with daily global prices, he said, adding that only 7 per cent of the sales, mainly bought by KOGAS, are being traded under a fixed-price contract to protect Yemen and the company with respect to Asian market prices.
About 85 per cent of the current staff of the company are Yemenis, he said.