ENRON TO PLAY KEY ROLE IN YEMENI LNG

Enron Corp., Houston, has agreed to help Yemen develop the infrastructure it needs to supply natural gas to domestic markets and liquefied natural gas to export customers. The project, set forth in a memorandum of understanding between Enron and General Gas Corp. of Yemen (GGC), calls for transport of GGC gas through a 250 mile pipeline to an export terminal to be built on Yemen's coast, treatment and liquefaction of the gas, and long term LNG sales to foreign buyers. Plans include

Nov. 22, 1993

Enron Corp., Houston, has agreed to help Yemen develop the infrastructure it needs to supply natural gas to domestic markets and liquefied natural gas to export customers.

The project, set forth in a memorandum of understanding between Enron and General Gas Corp. of Yemen (GGC), calls for transport of GGC gas through a 250 mile pipeline to an export terminal to be built on Yemen's coast, treatment and liquefaction of the gas, and long term LNG sales to foreign buyers. Plans include construction of a transmission system to supply gas to industrial customers in Yemen.

Enron agreed to design, construct, and operate the project's pipelines, gas liquefaction plant, and LNG export terminal. An Enron unit, still to be established, is to buy about 5 million tons/year of LNG for shipment to traditional Asian LNG markets. New markets developing in India and China also could be targeted for sales.

Enron also is to sell natural gas liquids produced by associated gas processing facilities.

Yemen and Enron expect to sign an implementation agreement within 1 year.