By SUMMER SAID
Yemen plans to raise prices on its exports of liquefied natural gas by the end of the year to boost revenues as the US market dries up.
The American shale gas boom has made natural gas relatively cheap and abundant in the US, forcing oil companies to divert cargo to Asia and Europe where they can fetch higher prices.
Yemen's oil ministry published a statement on its website saying the cabinet has approved a mechanism for modifying LNG prices and an agreement with all buyers on an average price will be reached before the end of the year.
French oil major Total and GDF Suez last year agreed to raise the price of Yemeni LNG sold under long-term contracts from 2014. Oil Minister Ahmed Dares said at the time that the country was looking to more than double its natural gas revenues to at least $340 million from $160 million.
Yemen LNG has three long-term contracts with Total, GDF Suez and Korea Gas Corp., or KOGAS.
Dow Jones Newswires