Yemen LNG expects to make the first shipment from its new gas liquefaction plant in July or August, the company’s chief executive said.
‘Joel Fort, chief executive and general manager, said the project will come on line four months late for a little over $4 billion, 15% above planned cost, which he said was a success. He commented on the sidelines of the Offshore Technology Conference in Houston. “We are now in pre-start-up mode, so we have already started, for instance, all the electrical generation,” Fort said. “All the utilities have been transferred to the operations people. One-third of the process train is now in the hands of the operations, as well,” he said. Start-up of the first train will be fully underway by the end of June in preparation for first cargo, he said. A second train will come on line about five months after the first, bringing the plant to full capacity of 6.7 million tonnes per year, Fort said. Yemen’s first LNG has been sold under take-or-pay contracts to Total, GDF Suez and Korea Gas Corporation, but it is coming into a weak market.