By OGJ editors
HOUSTON, Feb. 16 -- Tractebel LNG Trading SA, London, has signed a heads of agreement with Yemen LNG Co. to purchase 2.5 million tonnes/year of LNG for 20 years. Deliveries, which will require four ships, are expected to begin in 2009. Tractebel is a subsidiary of the French Suez Group business unit Tractebel Electricity & Gas International.
The LNG will come from a new liquefaction plant at Yemen's Bal Haf 300 km east of Aden on the Gulf of Aden where two, 3.4 million tonne/year trains will be built. Plant production is expected to begin by yearend 2008. Feed gas for the plant will be transmitted via a 320-km pipeline from producing Marib region fields in central Yemen (OGJ, Feb. 24, 1997, p. 62 with map).
Under the agreement Tractebel also has an option to take a 7.5% equity participation in the liquefaction plant to join current shareholders Total SA, which holds a 42.9% share; Hunt Oil Co. 18%; South Korea's SK Corp. 10%; Hyundai Heavy Industries Co. Ltd. 6%; and Yemen Gas Co. 23.1%.