Yemen unrest may hit LNG export, no impact yet

Reuters, Tuesday 22 Mar 2011

Production and delivery of liquefied natural gas in Yemen yet to be affected

Liquefied natural gas producer Yemen LNG has told customers that unrest in the country could lead to supply disruptions and possible force majeure, a spokeswoman for leading stakeholder Total said on Tuesday.

Yemen LNG's operations and deliveries are currently not affected, she said, but explosions on oil pipelines last week by disgruntled tribesmen had raised concern about gas supply.

"This is a notification of a possible force majeure event because for now production is still ongoing," the spokeswoman told Reuters in New York. "If the situation (in Yemen) is ongoing, we have to advise our buyers that there could be a problem."

France's Total is the project leader at Yemen LNG, with a
39.62 per cent share. Texas-based Hunt Oil owns a 17.22 per cent share and Yemen Gas Co 16.73 per cent.

Yemen LNG supplies liquefied natural gas to Europe, Asia
and the United States.

Other shareholders include Korea's SK Corp, Korea Gas Corp, Hyundai Corp and Yemen's General Authority for Social Security & Pensions.

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