The Gas Sector

The Liquefied Petroleum Gas (LPG):

Actually, gas plays a very crucial role in enhancing the growth of the national economy. It is a stimulant factor for domestic industries and households’ and service purposes and a guarantee for engendering financial resources geared for achieving a socio-economic development in Yemen. Because of all that, the MOM has and is still doing its best to promote this sector.

The discovery of great gas quantities stimulated the MOM to increase gas utilization. Thus, the MOM is working on encouraging investment in this sector through constructing LPG (liquefied petroleum gas) production plants and making available all requirements, tools, apparatus etc for transporting LPG. The aim is to make gas substitute traditional energy resources, such as wood, petrol and kerosene.

The Liquefied Natural Gas (LNG):

For the sake of ultimate utilization of the abundant natural gas reserves, in 1997 the Liquefied Natural Gas Project Agreement was signed to implement the project on three stages. The MOM represented by the Yemeni Gas Company has a share of 16.73%. The first stage concerning studies and marketing was completed in 2005 while the second being the construction and establishment of plants and other facilities would be finished during 2008. Then at the outset of 2009 comes the stage for commercial production, which would last for 25 years. This project is one o the giant establishments in the world. This is because it would generate giant returns to the national economy. It would generate different opportunities: such as social development projects, job opportunities to reduce the rate of unemployment and many other opportunities.

Beside this giant project, there are other gas investment opportunities. These include the following:

·       Utilizing natural gas domestically as a fuel for factories and transportation means and power generation and water treatment purposes;

·       Exploiting it as fuel for cooking, heating, especially in planned cities instead of using LPG which should preferably be transported to villages and remote areas to be used as fuel for illumination instead of wood and kerosene.

·       Utilizing natural gas in petrochemical industry and fertilizers’ manufacturing;

·       Improving and developing the necessary infrastructure needed for constructing factories using gas as fuel and/or construing of a gas pipeline network to cover the whole country;

Beyond the shadow of doubt, expanding the use of natural gas to replace other fuels would be a very magnificent accomplishment and giant investment serving the welfare of the society. This would not only decrease environmental contamination but also would protect the health of the individuals and society as a whole.