Yemen LNG

Stock performance

History

Yemen LNG built a liquefaction plant at Balhaf on the Gulf of Aden, fed by gas from fields in Marib, and began commercial production in November 2009, at the time the largest industrial investment in Yemen's history. Its shareholders are led by TotalEnergies, alongside other international companies and Yemeni state entities. The plant halted production in 2015 when the war escalated and has remained shut since.

Business model

When operating, Yemen LNG liquefied natural gas and sold it under long-term contracts to buyers in Asia and elsewhere, with a capacity of about 6.7 million tonnes a year.

Market position

Yemen LNG was Yemen's only LNG export project and a significant regional supplier before its shutdown.

Country impact

Before the war, LNG and oil exports were the government's main sources of foreign currency, so the plant's closure contributed heavily to the collapse of public finances and the currency, and its eventual restart is seen as key to any economic recovery.