New York: French utility GDF Suez has approached Yemen LNG asking that it be allowed to divert some liquefied natural gas cargoes from Yemen to attractive destinations in the Pacific Basin, a source close to the situation told Reuters.
Under the current contract, which will begin in 2010, LNG shipped by GDF Suez from Yemen is ear-marked for U.S. terminals and is based on U.S. gas prices, with the option to divert five cargoes a year to European markets.
However, slack demand and ample supply have pressured U.S. gas prices, making it less attractive to LNG shippers than markets such as India and China.
"You can send cargoes elsewhere with the consent of Yemen LNG," the source said. "They have been approached to divert cargoes elsewhere. It will allow for more cargoes to have more global destination rights," he said, mentioning India and China as possible destinations.
GDF Suez will have the capacity to deliver 2.55 million tonnes of LNG per year from Yemen from 2010.
First LNG is expected from Yemen LNG in October, with a second production train expected a few months later.
Yemen LNG shareholders include project operator Total, Hunt Oil, Yemen Gas Company, SK Corporation, Korea Gas Corporation, Hyundai Corporation and Yemen's General Authority for Social Security & Pensions. [08/10/09]
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