NEW BEGINNING: Yemeni President Ali Abdullah Saleh inaugurates the newly built LNG plant in Balhaf on the Gulf of Aden on Saturday. (AFP)

BALHAF, Yemen: Sana’a began exporting liquefied natural gas (LNG) from its newly built LNG plant in Balhaf on the Gulf of Aden on Saturday, with the first shipment destined for South Korea.

In a hillside ceremony overlooking the coast, President Ali Abdullah Saleh inaugurated exports by pushing a button giving the order to start pumping LNG from the terminal to a vessel anchored offshore.

The South Korean LNG carrier Ecopia will load 147,000 cubic meters (5,145,000 cubic feet), according to Philippe Hennebelle, production manager at the plant which has France’s Total as the main shareholder with a 39.6 percent stake.

“Six shipments are expected to leave before the end of the year,” he told AFP.

The $4.5-billion (SR16.87 billion) project, involving a 320-km gas pipeline from Maarib in eastern Yemen, is the country’s largest ever investment.

The plant aims to reach a total production capacity of 6.7 million tons of LNG a year, exporting to South Korea, Europe and North America.

Yemen, a small oil producer, is one of the world’s poorest countries. Its oil exports are tiny compared with neighboring Saudi Arabia. Last year it produced less than 300,000 barrels per day of crude oil, and production is decreasing by five to six percent a year. Yemen LNG is a company with 700 employees. During its construction, it supported the local economy by sourcing several thousands jobs amongst the local population.

Total has been present in Yemen since 1987. The current production operated by the company amounts to 56,000 barrels per day. Total holds interests in the two main oil basins, as the operator on Block 10 (Masila Basin, East Shabwa permit, 28.57 percent) and as a partner on Block 5 (Marib Basin, Jannah permit, 15 percent). Total is a leading producer in the LNG sector, with strong and diversified positions worldwide. It is active in most of the major LNG — producing regions and main LNG markets and continues to develop LNG as a key component of its development strategy. The company produces LNG in Indonesia, Qatar, the United Arab Emirates, Oman, Nigeria and Norway. The start up of Yemen LNG and Qata’s LNG production by close to 40 percent in 2010.

Angola LNG, which is currently under construction, will complement this portfolio in 2012.