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
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