[04/September/2010]

SANA'A, Sep.04(Saba)-Yemen has started negotiations with South Korea, one of the partners and buyers of Yemen liquid natural gas(LNG), over reviewing the LNG prices in light of the international developments.

Minister of Oil and Minerals Amir al-Aydarus said that there are ongoing negotiations with Korea Gas Corporation (KOGAS), which purchases about the third of Yemeni gas and is a partner in the project, to improve the selling prices.

Yemen has managed to cancel or reduce fines for delaying of gas shipments to Korean market, due to delaying the launching of the project for six months, as the program included exporting 20 shipments in 2009, but the exported shipments haven't exceeded three shipments, he pointed out.

Al-Aydarus declared that about 15 LNG shipments allocated to the American market would be remarketed to KOGAS till the end of 2011 according to the international market price, which is three more times than the current price.

He confirmed that 20 LNG shipments, which were allocated to the American market till August 31, have been diverted to India, China, Japan, Spain and Kuwait markets, which achieved additional revenue of USD 4.7 million per shipment.

Yemen has signed contracts for the sale of 2 million metric tons of LNG annually to KOGAS, and 2.5 million metric tons annually to an American company, as well as 2 million metric tons allocated per annum to the American market.

FJ/BA

Saba