South Korean Companies Renew Investment in Yemen LNG Project Amid Ongoing Civil War
South Korean companies Korea Gas Corporation, SK, and Hyundai Corporation have extended their investment in the Yemen LNG project until 2044, despite the ongoing civil war that began in 2015. This project, vital for South Korea as it provides 14% of its LNG consumption, produces 6.7 million tons annually, while the conflict has led to increased operational costs and safety concerns that previously prompted TotalEnergies to withdraw.
Theia Market Signal Identification - AI Assisted
Korea Gas Corporation, SK, and Hyundai Corporation have approved an extension of funding for the Yemen LNG project, despite ongoing conflict in the region. The investment period for the Yemen YLNG project, initially set to end in 2032, has been postponed to 2044 due to the civil war that began in 2015.
The project, which produces 6.7 million tons of LNG annually, is crucial for South Korea, accounting for 14% of its LNG consumption. The ownership structure includes SK Consortium (9.6%), Korea Gas Corporation (8.9%), and Hyundai Yemen LNG (2.9%).
Prior to the war, Korea Gas invested $337 million in the project and recovered 88% of its investment. The war has forced domestic companies to incur ongoing operational expenses, while safety concerns led to TotalEnergies withdrawing in 2015. Companies are expected to continue covering costs as the conflict persists, which has escalated into a proxy war involving foreign powers.
Comments