08 May 2010
With the participation of over 15 journalists representing major local media outlets in Yemen, the General Manager Mr. Francois Rafin, held a press conference today Thursday at the Yemen LNG premises with the main objective to explain the structure of gas prices in the international market and the factors that affect gas prices worldwide.


Mr. Rafin underscored the fact that the LNG sales contracts signed by Yemen LNG in 2005 with the three main buyers (Total Gas and Power, GDF-Suez and Kogas) were amongst the best at the time and provide the Company with the security of revenues. It was indicated during the press conference that the Yemen LNG marketing strategy has obtained in 2005 a mix of sales between an Asian contract which provides good stability and security of revenue and US contracts which have more potential upside but less stability. The Asian market ensures security of revenues at times when the US gas market prices are depressed.


Mr. Rafin highlighted too Yemen LNG’s diversion activities which seek to “optimize the value of sales by seizing opportunities in Europe and Asia and consequently provide prices better than those in the US”.


“Seven diversions”, Mr. Rafin added. “have already occurred since the start of LNG exports last November and ten more are scheduled until the end of the year”.


The press conference also touched on various other issues including the Company’s successful participation in LNG16 in Algeria last week; recent activities geared towards introducing more benefits to the people of Yemen through the scholarship program and recruitment and training of new technicians; as well as the launch of construction of an LPG extraction unit at Marib.