To serve Yemen Oil and Gas market, SPEC group established engineering and sales office in Sana’a Yemen. Management of Group understand the dynamics of Oil and Gas sector that Yemen faces and recognize the unique opportunity in this market. SPEC new office is located in Hadda, Sana’a with management having plan to setup its manufacturing facility in Aden to cover oil and gas market of Saudia Arabia, Sudan, Egypt and Libya.
Oil & Gas Scope in Yemeni Market
As we know that Yemen’s economy is highly dependent on oil production, and exporting 85 % of export revenues and 33 % of gross domestic product (GDP). In 2006, around 240,000 barrels per day (bbl/d) of oil was exported, primarily to Asian markets, including China, India, and Thailand. Yemen’s oil output stood at an average 439,000 b/d in 2001 and estimated average production for 2002 at 470,000 b/d.
Natural Gas:
According to OGJ, Yemen had 16.9 trillion cubic feet (Tcf) of proven natural gas reserves in 2007. The bulk of Yemen's natural gas reserves are concentrated in the Marib-Jawf fields, with 10.2 trillion cubic feet (Tcf) of proved reserves. Despite longstanding plans to develop an export-based natural gas industry, Yemen has yet to produce any natural gas. The sector has lagged due to weak investment and marketing prospects, but the push to develop the liquefied natural gas (LNG) sector is likely to increase opportunities for exploration and production.
Liquefied Natural Gas:
Of the 16.9 Tcf of proved natural gas reserves in Yemen, 9 Tcf have been earmarked for the Total-led Yemen LNG (YLNG) project. Despite problems negotiating with the government-owned Safer Exploration and Production for the supply of natural gas from its Marib fields and other delays, work is currently underway at YLNG’s gas liquefaction plant, located at the port of Balhaf near Aden on Yemen’s southern coast.
The facility is expected to produce 6.7 million tons per year (900 million cubic feet per day) of LNG. YLNG is also building a 20-mile pipeline connecting the gas processing facilities in Marib’s Block 18 to the liquefaction facilities. Train 1 was expected to come online by December 2008, but delays have pushed back the start up into early 2009. Train 2 is expected to come online by May 2009. The plant plans to export approximately two-thirds of its production to the U.S. and the remainder to Asia.
The Yemen Gas Company holds a 23 percent share in the YLNG project and the sector is regulated by the MOMR. The government also has plans to develop the gas resources for domestic industry and 1 Tcf of the country’s proved reserves have been allocated for domestic usage.