Force majeure declared on Yemen LNG exports
Total-operated Yemen LNG export facility in Balhaf declared force majeure on liquefied natural gas exports following recent unrest and government collapse.
The facility stopped operations on Sunday, January 18 and evacuated foreign experts from the facility.
As Platts reports, this shutdown could impact LNG supplies into Asia, as most of the cargoes exported from the Balhaf plant are shipped to Asian customers.
The last vessel to leave the LNG facility was the GDF Suez Point Fortin, and as Platts further informs the Marib Spirit which was on its way to Balhaf was diverted to Middle East.
As sources close to the matter told Reuters, political circumstances caused the government to instruct Yemen LNG not to completely shut down the plant but to lower production and declare force majeure.
Asian LNG prices remained unchanged despite the possibility of tighter supplies in Asian spot market. Sources further said that this is due to the expectations that the issue could be resolved soon if the new government is installed in the following few days.
The Yemen LNG project consists of two liquefaction trains with a total capacity of 6.7 Mtpa. It has three long-term contracts to supply LNG to GDF Suez, Kogas and Total Gas & Power.
LNG World News Staff; Image: Yemen LNG