Yemen to set up 'gas city' with UAE's Dana, Crescent
Source: BI-ME and Reuters , Author: Bi-ME staff
Posted: Thu September 10, 2009 3:33 pm

UAE. The UAE's Dana Gas and Crescent Petroleum have announced they signed a memorandum of understanding with Yemen to set up a "gas city" in the country.

In a statement, the two companies said the Gascities Ltd, a joint venture between  Dana Gas and its parent company Crescent Petroleum reached agreement with the Yemeni government to "investigate the development of its proprietary gas city concept within Yemen."

"Gas cities" are large, gas-fed industrial complexes housing petrochemical and heavy manufacturing plants. Dana Gas and Crescent plan to build at least four in the Middle East and North Africa, including in Egypt.

The project could attract US$15-US$20 billion worth of investments over 25-30 years, doubling Yemen's foreign investment and creating up to 90,000 jobs.

Gascities chairman Badr Jafar said in the statement that phase one of the project would establish a viable feedstock profile and choose a location for the gas-based industrial city.

"At this point it is envisioned that Yemen Gas City will comprise a chemistry park containing methanol and fertiliser factories, a utilities hub that will make the project completely self-sufficient for all utilities...," Jafar said.

Yemen is hoping that exports of superchilled gas will offset the impact of falling oil revenues on its fragile economy. At the end of 2008, Yemen held 17.3 trillion cubic feet of proven natural gas reserves, according to the BP Statistical Review.

"The Gas City concept has the potential to promote significant economic activity in Yemen and bring substantial foreign investments directly into our local markets," oil and mineral resources minister Amir al-Aidarus was quoted as saying.

Meanwhile, preparations are underway for a key conference in Yemen to promote gas and oil early next year, the Ministry of Oil and Minerals said on Wednesday.

Minister Amir Al-Aidrous said the event, to be held in Sana'a, will review investment opportunities in the two fields before to-be invited large international companies.

During the conference, the fifth international tender for onshore and offshore oil production blocks in the country would be announced, the minister added

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

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KUWAIT. Kuwait has built up very large fiscal and external net asset positions over many years, which will continue to help it weather the current low oil price environment; The overall fiscal and external balance sheets will remain strong, backed by a significant stock of financial assets.
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