Local News

President Calls Ministry of Oil to Reconsider Gas Prices

National Yemen

President Calls Ministry of Oil to Reconsider Gas Prices

By NY Staff

President Mansour Hadi spoke with the Minister of Oil and Minerals to finalize procedures for modifying export prices for Yemen’s liquid gas prices.  All companies who purchase Yemeni liquid gas will be face the new prices from the beginning of next year.

President Hadi insisted in his meeting with the Minister that the Yemeni people have suffered from low prices of Yemeni gas in international markets, and that these depressed prices have imposed significant losses on Yemen’s economy.  This should be ended and the prices should be corrected according to those set by international markets.

Hadi called on the Ministry to pay close attention to this matter and to open the gate for investment in the oil, mineral and gas sectors. He also encouraged greater also oil production from existing and new oil sources for the purpose of developing the Yemeni economy.  This is especially important in Yemen’s current situation, which has negatively effected Yemen’s development and economic prospects.

Yemen LNG is the only company that processes and exports Yemen’s liquid gas resources from the Marib to Belhaf with a French partner.

Minister said Ministry has succeeded in changing the price of 70% of Yemen’s natural gas. The price of the remaining 30% will soon be discussed with CoGas. The Ministry says that they have prepared a strategy for modifying the saving rates pursuant to the Gas Development Agreement. This will take place in addition to negotiations for revising Yemen’s gas contracts to take place in 2014, according to international advisers.