Regional LNG: Yemen to supply LNG to U.S., S.Korea

Yemen approved on Tuesday agreements by Yemen LNG to supply more than 6 million tonnes of liquefied natural gas (LNG) per year to three international firms, the state news agency Saba reported.

The cabinet also approved the sale of 6 percent of a Yemen LNG project to Korea Gas Corp (KOGAS), Saba said.

Under the deals signed earlier this year, Tractebel LNG Trading, a unit of Suez , would purchase 2.5 million tonnes a year, while Total Gas and Power and KOGAS would buy up to 2 million tonnes each.

"The cabinet approved the sale and purchase agreements ... to supply the Korean and American markets with Yemeni gas at a rate of 6.5 million tonnes per year for 20 years," Saba said.

Supply to both Tractebel and Total, destined for the United States, is expected to begin in 2009. Supply to KOGAS will start at the end of 2008.

The LNG supply will come from a new liquefaction plant in the port of Balhaf.(*)