Yemen LNG declared Force Majeure on Tuesday citing deteriorating security situation near its Balhaf Liquefaction Plant.
"Due to further degradation of the security situation in the vicinity of Balhaf, Yemen LNG has decided to stop all LNG producing and exporting operations and start evacuation of the site personnel," the company said in a press update.
The plant will remain in a preservation mode, the statement said, adding the company will continue to survey closely the situation on the plant and its vicinity.
The statement coincided with reports that tribes, probably loyal to Houthi militants and ex-president, have attacked the Balhaf plant with mortars and are trying to take it over.
Houthi militants have lately infiltrated into Shabwa province in southeastern Yemen where the plant is located.
Local tribes have mobilized and have been fighting the militants in key parts of the province.
Lately, tankers have not been allowed to come through to the Balhaf terminal to load LNG cargoes due to a blockade on the country's sea and air ports.
The blockade was authorized by the Yemeni government and imposed by a Saudi-led Arab coalition which launched a military operation against the Houthi militants more than two weeks ago.
The blockade has affected all import and export operations forcing all oil firms to shut down production activities on Yemen blocks.