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Bouncing back from a 2009 slump, global energy demand is set to rise by 2.5% annually until at least 2015; Yemen’s recently activated natural gas industry is poised to grow with it. Ranking 33rd (of 206) worldwide in proven reserves according to 2009 estimates, Yemen currently holds 478.5 billion cubic meters of natural gas. The find has already attracted a USD $4.5 billion investment led by Total and a consortium of international firms that has resulted in the construction of a plant, pipelines and trains. As of 2010 Yemen Liquefied Natural Gas (LNG) is expected to produce 6.7 million tons per year for export from the Gulf of Aden and 2.55 million tons delivered from GDF Suez. One trillion cubic feet are also reserved for the domestic market: demonstrated, since 1971, to command an ever growing energy demand and consumption.

      Source: SESRIC

Worldwide demand for natural gas, already on a long term upward trend, will likely expand even more as low carbon technologies and government policies seek an energy solution less detrimental to the environment. According to the International Energy Agency, non-OECD countries – and the Middle East in particular – will account for 89% of the projected increase in output and exports between 2007 and 2030.

Yemen LNG and other Sector Opportunities

Historically the country’s largest industrial investment project, Yemen LNG was launched in 2005 as a milestone for both the government and the private sector. It will, for at least the next twenty years, become one of the country’s top economic growth and industrial development contributors. Already fully functional, the project will continue to impulse technical training and specialized skills amongst Yemen’s educated workforce in addition to attracting greater international and domestic investment in the sector. More information on Yemen LNG can be found here.


Due to the consortium’s success and far reaching implications for all energy intensive sectors, Yemen Gas City Company announced, in late 2009, a USD $20 billion design for an industrial city in Hodeidah powered by Yemen LNG’s natural gas. The complex will house petrochemical and heavy manufacturing plants, as well as cement plants and power stations. The investment has also sparked government negotiations in sharing agreements with oil companies in the country to exploit natural gas exploration, production and development.

Key Strengths
  • Increasing global demand in liquefied and natural gas.
  • In electricity production, natural gas is an attractive choice because of its relative fuel efficiency, low emissions, quick construction timelines and low capital costs.
  • The Ministry of Oil & Minerals is working on encouraging investment in this sector by constructing LPG (liquefied petroleum gas) production plants and making available all requirements, tools, apparatus etc for transporting LPG. The long term goal is to substitute natural gas for traditional energy resources such as wood, petrol and kerosene.
  • Yemen’s educated workforce offers abundant, experienced labor collecting an income of USD $160/month in the sector.
GIA can help

The natural gas sector in Yemen has great potential for growth and even greater potential for investment. GIA will help investors learn more about industry opportunities and, when applicable, establish contact with the various Yemeni institutions and associations responsible for energy management and growth including the Ministry of Oil and Mineral Resources and Yemen’s Electricity and Water Ministry.

For further information on opportunities in natural gas, please contact GIA’s sector expert in the field:

Name: Mr. Mohammad Al-Farzaiy
Position: Head of the Industrial Sector
Language: Arabic
Tel: 967 1 262 962 / 260 120
Fax: 967  1 262 964
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