Under the Sales and Purchase Agreement signed in 2005 between Yemen LNG and Total Gas and Power, the Gulf of Mexico and Western Europe are the primary destinations for LNG sales. Yet since the commencement of Yemen LNG production in 2009, up to 15 cargoes by year are diverted to the more rewarding Asian markets.
Responding to the continuing fall of US gas prices, Yemen LNG and TGP agreed to further increase the number of diversions by 20 more cargoes to Korea over the years 2012, 2013 and 2014. Under this agreement, the LNG is sold to Kogas at current market price. The signature took place in Paris on 14th February in the presence of HE Hisham Sharaf Abdalla, the Minister of Oil and Minerals.
The revenues of Yemen LNG and of Yemen will significantly increase with these additional diversions. Furthermore, Yemen LNG and Total Gas and Power will deliver to the Government of Yemen around 150,000 tons of gasoline to feed the domestic Yemeni market in 2012, 2013 and 2014.
In 2011 Yemen LNG delivered 60% of its production to Asia, 15% to Europe and 25% to the Americas. Yemen LNG also imported 50,000 tons of propane and butane to help Yemen facing a dramatic shortage of domestic gas.
“Our reputation as a reliable LNG supplier is appreciated by the premium Asian buyers. Korea now receives half of our LNG production and we also regularly supply China, Japan and India. The fall of the US LNG demand was unforeseen by the markets, but with the strong support of our shareholders we seize this opportunity to redeploy our sales portfolio to Asia. It creates value for the Company and for Yemen at a time where the country needs it.” said Yemen LNG’s General Manager Francois Rafin.