Eric Watkins
Senior Correspondent
LOS ANGELES, Sept. 19 -- State-owned Yemen LNG Co. (YLNG) let a contract worth more than $2 billion to Halliburton subsidiary KBR and partners for engineering, procurement, construction, precommissioning, commissioning, start-up, and operational services for Yemen's first LNG plant.
KBR's partners are Technip of France and JGC Corp. of Japan.
The plant is to be built at the port of Balhaf near Aden on Yemen's southern coast. It is to consist of two liquefaction trains with a combined capacity of 6.7 million tonnes/year (OGJ Online, Feb. 16, 2005).
KBR said Train 1 is expected to start operating by yearend 2008. Train 2 is expected to start 5 months later. Gas supplies will come from Marib-Jawf fields on Block 18, operated by Hunt Oil Co.
YLNG has signed three 20-year agreements. Korea Gas Co. will purchase 1.3 million tonnes/year of LNG starting in 2008, with an option to increase its purchases to 2 million tonnes/year. Total Gas of France has signed an agreement to receive 2 million tonnes/year beginning in 2009, and Tractebel of Belgium has signed a contract for 2.5 million tonnes/year.
The shareholders of the YLNG are Total 42.9%, Yemen Gas Co. 23.10%, Hunt Oil 18%, SK Corp. 10%, and Hyundai Corp. 6%.