Yemen’s ministry of oil and minerals is planning a US$3bn project that will link all regions in Yemen producing liquefied gas into a unified network for export purposes.

A team of experts involved in the project pointed out that this will be a substantial undertaking, which will be implemented this year and will include, for the first time, the construction of large structures for the production and storage of liquefied gas.

The project also involves the construction of a new pipeline network which will link the regions of Safer in the province of Maarab to Hadramout, and will link the southern and central provinces to a new port that will be built in the Shabwah province on the Arabian Sea. This port will be used for exporting gas.

A Yemeni official from the oil and minerals ministry says research studies for the project have been concluded, including the rules for bids by private companies. He further clarifies that the total cost for the completion of the project will reach up to US$35bn.

The official points out that several companies showed interest in purchasing sizable quantities of liquefied gas from Yemen.
He further indicates that the studies show the likelihood that the government would rely on the revenues from this project to boost liquidity of foreign currency in the country and to compensate for the potential drop in oil production.

Recently, Yemen signed a deal with Kogas, a South Korean-based firm to buy 33mn tons of liquefied gas and another deal with the US to buy 25mn tons.

Yemen has substantial oil reserves reaching 165tn tonnes; 67mn of it is exportable liquefied gas.