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Building Yemens first LNG plant

Yemen LNG

Our projects

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Establishing Yemen LNG as an international

Liquefied Natural Gas supplier

In August 2005, the Yemen LNG project was launched. It is the

single largest investment project in the industrial history of

Yemen, for a total value of almost 4.5 billion dollars.

The project involved:

A 320-km long pipeline from the Marib gas field, in CentralYemen, to the coast.

A 2-train liquefied natural gas plant in Balhaf, on the Gulf of Aden, 200 km South-West from

Al-Mukalla.

Train 1 has been in operation since October 2009

with the first LNG carrier loaded early November,

whereas Train 2 came on stream in March 2010.

The Balhaf site, on the Southern coast of Yemen,

was chosen for the LNG facility because it offers

a natural harbour, protected from the monsoon's

wind gusts and sea swells.

It is also a strategic location at the crossroads of

international maritime routes. The output from

the plants requires the movement of 100 LNG

carriers per year, to deliver the LNG to Asian,European and American markets.

The monetisation of Yemens naturalresources has been the countrys

focus since the 1990s.

In September 2005, Yemgas,

the Technip-led Joint Ventureequally shared between

Technip, JGC and KBR was

awarded the engineering,

procurement and

construction contract for the

2-train LNG plant including

utilities and offsites.Client: Yemen LNG Company Ltd (YLNG) withpartners: Total (Project Leader with 39.62%), Hunt Oil

(17.22%), Yemen Gas Company (16.73%), SK Corporation(9.55%), Korea Gas Corporation (6%), Hyundai

Corporation (5.88%) and Yemens General Authority for

Social Security & Pensions (5%)

LNG plant Contractor: Yemgas, a Technip-led joint

venture equally shared between Technip / JGC / KBR

Lump sum turnkey contract awarded in September

2005

Global LNG production capacity of 6.7 Mtpa

Steady production since November 2009 (train 1) and

March 2010 (train 2)

Yemen LNG

Yemen

Arabian

Sea

Saudi

Arabia

A challenge for the Technip-led

joint venture

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Yemgas project scope

This project confirms Technip among

the first tier of EPC contractors in LNG

In 2009 and 2010, through the delivery of projects

including Yemen, Technip will have delivered 57 million

tonnes per year of LNG capacity to its clients, including

the worlds largest LNG trains in Qatar.

Underpinning this achievement meant

meeting a fantastic challenge made possible

by the commitment of the Technip-led

joint venture over several years.

It all started in the 1990s when Technip and its partners carried out the FEED studies for the project. In September 2005,

Yemgas signed the Engineering, Procurement and Construction contract with Yemen LNG Company Ltd for the LNG

plant:

Engineering, procurement, construction, commissioning and start-up of 2 liquefaction trains with a total capacity of 6.7

million tonnes of liquefied natural gas per year.

Air Products C3/MR process, with the refrigerant compressors in Split MR configuration to maximise production from

the two GE Frame 7 gas turbine drivers.

2 full containment storage tanks of 140,000 m3 each.An 800-m long jetty.

Overall construction supervision of the entire facilities / utilities.

Large-scale infrastructure requirements.

Technip will have been involved in

adding around one third to theworlds LNG production capacity.

Supported by outstanding Project

Management skills and a strong

organisation, Technip is capable of

managing several of these gigantic

grassroots projects simultaneously,

even in remote locations where

infrastructure is not completely

adapted and most of the material

needs for the project have to be

brought in.

The Yemen LNG contract is one

example of Technips leadingposition among the first tier of EPC

contractors in LNG:

FEED studies

LNG train detailed engineering

Utilities / Facilities construction

supervision

Joint Venture leadership

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The project recorded

periods of up to 15 million

hours without Lost Time

Injury (LTI).

A massive HSE training programme

was central to achieving this result.

The site HSE Departments mission

was to work on the process of

improving peoples behaviour as

the main way to improve overall

project HSE statistics. Various

training modules were provided

both in English and Arabic to

maintain constant safety

awareness:Site HSE induction

Defensive driving

Confined space entry

Working at heights

Commissioning & start-up

safety

The team

The know-how developed by the Technip Security

division over recent years on other projects allowed

a site-specific programme to be successfully

deployed at Balhaf with several innovative measures.

The quality of the programme has since been

recognised by many external parties.

Outstanding Security

Security of Personnel consisting of a Meet & Greet procedure, a

Travellers booklet, accommodation audits and inspections, Security andCultural induction programs on site.

Physical security measures (original concepts developed by Technip)

Security Operations Room aiming at centralising all Security-related

communications.

Quick Response Team (QRT) consisting of a permanent Security Patrol

inside the site.

Main Gate, a pivotal access point in a project site where all personnel,

equipment, materials and goods transit.

Security toolbox

Balhafs Security Master Plan detailing the responsibilities of each

stakeholder. Established prior to opening the construction site.

Appointment of permanent Subcontractor Security correspondents

within the camps/worksites.

Security Instruction book for operational support.

Cultural and religious inductions within the Awareness Program.

In March 2008, at the peak of construction, some 9,200 people from

72 nationalities were working on the construction of the liquefaction plant.

The Yemgas management team was just over 200 strong from 35 nationalities.

140 out of the 208 Technip staff Balhaf April 2009

HSE performance

Yemen LNG

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The projects main challenges

To make the Yemen LNG project the success that is,

Technip had to overcome several challenges over the 4 years

between contract award and start up:

Major success factors

Construction market tightness in 2005. At the time of the project launch, several other LNG projects were underway

worldwide, reducing the availability of skilled labour, construction materials and equipment and making it more

difficult to predict costs and schedule.

Technology-intensive and large-size plant in a remote location. Each train is using the Air Products C3/MR process.

Large-scale infrastructure which required building:

a harbour to receive industrial equipment from 60 shipments

an airport for employee transfer

a city to accommodate 10,000 people during construction phase and 700 permanent staff during operations

Security: building such a high-technology industrial project in a location like Balhaf represented a challenge due to the

remoteness of the site, its shorefront on the Gulf of Aden and the duration of the construction phase (4 years).

Ensuring the security of personnel (whether Client, staff, contractors, visitors or Government bodies) and of the

facilities (plants, harbour and vessels, airport, and equipment) was at the forefront of Technips concerns.

Careful planning with a good quality FEED and early realisation of the scale of the challenges.

The selection of proven technologies, equipment and partners from the global LNG supply chain.

First rate project management and allocation of appropriate resources in conventional and less conventional project

management domains.

Pre-negotiated contracts for site preparation and certain critical equipment items that were assigned to Yemgas at EPC

contract award.

A spirit of co-operation: enthusiasm, dedication and hard work of a diverse multicultural workforce.

The support of Yemeni authorities and local population.

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Purchases in YemenMost of the plant technical items (pressure vessels, machinery, columns etc.) were

imported due to local unavailability. However, Technip through its Yemgas joint

venture implemented at very early project stages a procurement policy to favour

local supply of goods and services available in Yemen such as: office stationery

and furniture, computers and printers, site consumables, office cabins, air

conditioning units, vehicles, safety equipments, telecommunications etc.

Local subcontractors

One of the Yemgas objectives was to ensure that the local business community

took part to the realisation of the project. In this way, several million dollars wereallocated to local companies who had the opportunity to discover and develop

modern industrial techniques and management.

Camp landscaping and irrigation system for both Client and Contractor camps.

Water management: the Balhaf site produces its own water (except drinking

water).

Waste recycling: Yemgas contracted a local company for site domestic and

vehicle wastes.

Waste donations such as timber, steel and cables.

Recruitment of Yemenis

Providing employment to local communities has been a main objective andachievement. Over the life of the project, it is estimated that almost 13,000

Yemenis have come and obtained a position within the team: office and field

positions requiring technical and English language skills, engineers, industrial

relationships, labour, supervisory positions in civil and piping works etc.

Knowledge transfer

In order to share the experience of industrial projects among the Yemenis present

on site and give them marketable skills, Technip through its Yemgas joint venture

organised a wide training campaign in different fields: HSE, quality management,

English, camps and catering etc.

HEADQUARTERSTechnip89 avenue de la Grande Arme75773 Paris Cedex 16FrancePhone: +33 (0)1 47 78 24 00

LNG / GTL Product LinePhil Hagyard, SVPPhone: +33 (0)1 47 78 27 17Email: phagyard@technip.com

This document is the property of Technip and is not intended to be a binding contractual document.Any information contained herein shall not result in any binding obligation on the part of Technip, orany of its affiliates, and is provided for information purposes only.Technip - Group Communications - March 2011 - Photo credits: Technip

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