yemen gas company

“ The Alternative Options for YGC for Obtaining “ The Alternative Options for YGC for Obtaining Clean Energy in the City of Yemen”Clean Energy in the City of Yemen”

( Technical( Technical-- EnvironmentEnvironment-- Economics)Economics)( Technical( Technical-- EnvironmentEnvironment-- Economics)Economics)

Dr. Ahmed S. N. Zaid Dr. Ahmed S. N. Zaid

City Gas India Conference held in New Delhi, 15-17 September,2008, India

Tawfiq A.M. DhibanTawfiq A.M. Dhiban

Dr. Najeeb AlDr. Najeeb Al--aojaoj

Under Supervision ofUnder Supervision of

BYBY

Mohammed S.Basha Mohammed S.Basha

Introduction :Introduction :

The YGC is a National Company within the Yemeni Ministry of Oil The YGC is a National Company within the Yemeni Ministry of Oil and Minerals. and Minerals. YGC is administrating all works & commercial activities (PublicYGC is administrating all works & commercial activities (Public--Private) of the fuelPrivate) of the fuel--gas in Yemen:gas in Yemen:

11.The upstream activities.The upstream activities22.Transportation.Transportation33. Downstream market.. Downstream market.33. Downstream market.. Downstream market.

Since starting the works, YGC adopted procedures for developing Since starting the works, YGC adopted procedures for developing the domestic market of LPG as clean energy fuel.the domestic market of LPG as clean energy fuel.

The important trend has been taken is a partnership with the The important trend has been taken is a partnership with the private sector to participate with YGC activities in the mid & down private sector to participate with YGC activities in the mid & down stream works (i.e. Transportation, LPG Cylinder Filling stations , stream works (i.e. Transportation, LPG Cylinder Filling stations , LPG Cars refueling Stations, LPG Technical Service, and selling).LPG Cars refueling Stations, LPG Technical Service, and selling).

L.P. Gas market development:L.P. Gas market development:

: Started : Presently: Started : Presently

�� LPG Cylinder Filling Plants : 7 : 100 LPG Cylinder Filling Plants : 7 : 100

�� LPG Cars refueling Stations : 0 : 250LPG Cars refueling Stations : 0 : 250

�� LPG Technical Service Companies : 1 : 5LPG Technical Service Companies : 1 : 5�� LPG Technical Service Companies : 1 : 5LPG Technical Service Companies : 1 : 5

�� LPG Cylinders factories : 0 : 3LPG Cylinders factories : 0 : 3

--------------------------------------------------------------------------------------------------------------------------------------------------------

�� All (works & processes) of the facilities above, under supervision All (works & processes) of the facilities above, under supervision

of YGC. of YGC.

results results

�� The LPG fuel (in a record period of time) spread The LPG fuel (in a record period of time) spread throughout the country, including the distant throughout the country, including the distant small villages.small villages.

�� The YGC supervision & control over all works of The YGC supervision & control over all works of the private sector, led to wide spreading of the the private sector, led to wide spreading of the LPG safety standards & kept stability to the LPG safety standards & kept stability to the the private sector, led to wide spreading of the the private sector, led to wide spreading of the LPG safety standards & kept stability to the LPG safety standards & kept stability to the subsidized local price.subsidized local price.

�� The main part of public transportation in cities The main part of public transportation in cities switched to work by clean LPG fuel. switched to work by clean LPG fuel.

�� Increased the daily consumption of LPG fuel to Increased the daily consumption of LPG fuel to ((18001800-- 20002000) metric ton, that's equal to all LPG ) metric ton, that's equal to all LPG production in the country.production in the country.

Studies Studies

• • YGC has been completed the studies that are YGC has been completed the studies that are

required for future utilization of Natural Gas required for future utilization of Natural Gas

in local market. in local market. in local market. in local market.

•• The studies are implemented beased on The studies are implemented beased on

various probabilities for future periods (from various probabilities for future periods (from

2007 2007 to to 2012 2012 / / 2025 2025 / / 20402040..

The following Enquiries are Under StudyThe following Enquiries are Under Study

11. DO Yemen has enough reserves of NG that justify constructing . DO Yemen has enough reserves of NG that justify constructing

pipeline for transportation and modeling for city Gas Yemen?pipeline for transportation and modeling for city Gas Yemen?

22. Does the Yemen’s laws and regulations encourages the investments in . Does the Yemen’s laws and regulations encourages the investments in

Enquiries under study Enquiries under study

22. Does the Yemen’s laws and regulations encourages the investments in . Does the Yemen’s laws and regulations encourages the investments in

petroleum industry including the projects of City Gas Yemen?petroleum industry including the projects of City Gas Yemen?

33. Which Technology is suitable for transportation of NG to downstream . Which Technology is suitable for transportation of NG to downstream

market of Yemen under current situation?market of Yemen under current situation?

44. IF YGC decided to select temporary method for NG transportation . IF YGC decided to select temporary method for NG transportation

under current situation, Is there major losses related to assets in the under current situation, Is there major losses related to assets in the

time of implementing the optimal method?time of implementing the optimal method?

This paperThis paper

•• WillWill putput thethe ProjectProject ofof YGC,YGC, forfor naturalnatural gasgastransportationtransportation fromfrom thethe sourcessources toto thethedownstreamdownstream market,market, toto bebe implementedimplemented byby thetheoptimaloptimal technicaltechnical methodmethodoptimaloptimal technicaltechnical methodmethod

•• willwill determine,determine, whatwhat isis thethe methodmethod whichwhich willwillsuitesuite thethe presentpresent actualactual ability,ability, asas EconomicalEconomicalmethodmethod ,, andand willwill taketake intointo considerationconsideration thetheenvironmentenvironment requirementsrequirements forfor thethe projectproject asasCDMCDM projectproject..

The main project of YGC for the Natural Gas

Utilisation in local market

�� In general, the main project of the YGC In general, the main project of the YGC was prepared on the bases of :was prepared on the bases of :

1.1. The proved quantity of NG reserves The proved quantity of NG reserves ((1616..5 5 TCF)TCF)((1616..5 5 TCF)TCF)

1.1. The current & future projects of the major The current & future projects of the major consumers.consumers.

�� It includes (about It includes (about 1000 1000 km) gas pipeline km) gas pipeline routing for supplying major consumers of routing for supplying major consumers of fuel & potential consumers of gas in fuel & potential consumers of gas in various industrial sectors.various industrial sectors.

Domestic consumption of Gas in YemenDomestic consumption of Gas in Yemen

Production and ReProduction and Re-- injection of NG from Safer Block (injection of NG from Safer Block (1818) in ) in 2006 2006

Billion CF Billion CF

Produced Produced ReRe--injected injected Volume SoldVolume Sold

(LPG &C5+)(LPG &C5+)

43,135,33843,135,338NGNG

from Safer Block from Safer Block (18) (18)

992,364,821992,364,821

100%100%

949,229,483949,229,483

95,46%95,46%

43,135,33843,135,338

4.54%4.54%

•• YGC is planning to use NG for domestic consumption instead of LPG YGC is planning to use NG for domestic consumption instead of LPG and other fuel using optimal technology. and other fuel using optimal technology.

�� Energy SectorEnergy Sector

�� Power SectorPower Sector

Domestic Gas Markets Domestic Gas Markets --

Consumption CentresConsumption Centres

Safir

Marib

Gulf of Aden

Ras ketneib

Habilin

Rahida

Jarahi

Bajil

Ibb

Dhamar

Amran

Barh

Hodeidah

Mukha JaarTaiz

Nubat

Hajja

Sana’a

Mukala

Sada

Safir

Marib

Gulf of Aden

Ras ketneib

Habilin

Rahida

Jarahi

Bajil

Ibb

Dhamar

Amran

Barh

Hodeidah

Mukha JaarTaiz

Nubat

Habilin

Rahida

Jarahi

Bajil

Ibb

Dhamar

Amran

Barh

Hodeidah

Mukha JaarTaiz

Nubat

Hajja

Sana’a

MukalaMukalaMukala

Sada

�� Refinery SectorRefinery Sector

�� Industrial SectorIndustrial Sector

�� Cement IndustryCement Industry

�� Mining IndustryMining Industry

�� Agricultural SectorAgricultural Sector

�� Fertiliser IndustryFertiliser Industry

TurbahHiswa

Mansoura

Nubat

TurbahHiswa

Mansoura

Nubat

TurbahHiswa

Mansoura

Nubat

�� Environmental SectorEnvironmental Sector

�� Desalination PlantsDesalination Plants

�� Transportation SectorTransportation Sector

�� OthersOthers

�� PetrochemicalsPetrochemicals

�� ResidentialResidential

Domestic Gas Demand Estimate, Domestic Gas Demand Estimate, 20052005--20252025

Estimate of Gas Consumption

0,12

0,14

0,16

0,18

0,2

Gas Consumption, TCF

Power

Cement

Fertilizer

0

0,02

0,04

0,06

0,08

0,1

0,12

2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

Year

Gas Consumption, TCF

Fertilizer

Desalination

CNG/Transport

Others

�� Pile line for NG transportationPile line for NG transportation

The optimal Method The optimal Method

By: Rambol Co. By: Rambol Co.

Bagel Bagel Cement Cement fact.fact.

* Line from Khidar to Hodaidahacross Bagel Cement factory : 200 KM / 36″Branch to Hodaidah city +

* Line from Safer to Khidar : 162 KM / 36"

Branch to Marib Electro-Station : 1 KM / 18"

Marib Marib ElectroElectro--St.St.

Amran Cement Amran Cement fact.fact.

SanaaSanaa

Phase (Phase (11) : ( Safer ) : ( Safer –– Mabar) for gas transportation from Safer Mabar) for gas transportation from Safer to middle area in the country, it includes connection of main to middle area in the country, it includes connection of main consumption centers. consumption centers.

Hodaidah + Hodaidah + ElectroElectro--St.St.

Phase (Phase (22)) : ( Maabar: ( Maabar-- AlAl--HodaidahHodaidah-- MakhaMakha-- Aden) The Aden) The

following main consumption Centers will be connected: following main consumption Centers will be connected:

SaferSafer-- CPUCPU

6262KMKM

100100KMKM5050KMKM

Combination of

36”, 32” and 24”

pipeline with

upstream pressure of

140 Barg at SAFIR

Maabar Maabar ElectroElectro--St.St.

Branch to Hodaidah city + Hodaidah Electro-Station : 1 KM / 16″

* Line from Hodaidah to Al Makha : 200 KM / 32″

Branch to Al Makha Electro-Station : 1 KM / 24″

Branch to Taizz city

across Al Barh Cement factory : 65 KM / 24″

* Line from Al Makha to Aden city + Aden Refineries

+ Aden Electro-Station : 230 KM / 24″

Branch to Marib Electro-Station : 1 KM / 18"

Branch from Khidar to Amran : 100 KM / 14"

middle-branch to Sana city : 1 KM / 12"

Branch from Khidar toMaabar Electro-Station : 65 KM / 16"

ElectroElectro--St.St.

TaizzTaizz

Al Makha Al Makha ElectroElectro--Ste.Ste.

Aden +ElectroAden +Electro--St. St. +Refineries+Refineries

Al Barh Al Barh Cement fact.Cement fact.

LahijLahij

The problem under studyThe problem under study�� YGC submitted the pipe line project to the concerned economic YGC submitted the pipe line project to the concerned economic

units of Yemen Government for decision making about pipeline units of Yemen Government for decision making about pipeline constructing and Financingconstructing and Financing

�� Pipe line construction for City Gas Yemen still under study of Pipe line construction for City Gas Yemen still under study of Yemen Government searching an appropriate source for Yemen Government searching an appropriate source for financing.financing.

�� YGC ,independently can not take the final decision for pipe YGC ,independently can not take the final decision for pipe line construction and financing nor enforce the government to line construction and financing nor enforce the government to line construction and financing nor enforce the government to line construction and financing nor enforce the government to finance the pipe line project from the limited budget of country.finance the pipe line project from the limited budget of country.

�� YGC understand that government decision for pipe line YGC understand that government decision for pipe line construction rely on the financing ability, and that may take a construction rely on the financing ability, and that may take a number of years due to the budget limitation.number of years due to the budget limitation.

�� Therefore, the YGC currently plan to analyze the alternative Therefore, the YGC currently plan to analyze the alternative options for transportation of NG to the main Cities of Yemen options for transportation of NG to the main Cities of Yemen by selecting the appropriate technology which will be suitable by selecting the appropriate technology which will be suitable with the future implementation of Pipe line. with the future implementation of Pipe line.

The approaches for the The approaches for the Problem Solution and Problem Solution and

decision making decision making

YGC engineers have been using many approaches including: YGC engineers have been using many approaches including:

�� The achieved studies by YGC towards City Gas Yemen.The achieved studies by YGC towards City Gas Yemen.

�� The indicators from The indicators from experience of Chinaexperience of China on NG transportation on NG transportation as guidelines for YGC’s decision making. as guidelines for YGC’s decision making. as guidelines for YGC’s decision making. as guidelines for YGC’s decision making.

�� The indicators by The indicators by John Chow StudyJohn Chow Study entitled “Compressed entitled “Compressed Natural Gas Natural Gas –– Turning Discrete into Useful”, Turning Discrete into Useful”,

Jilin Hong Kong and China Gas Co Ltd. In IGEM Young Persons Paper Competition Jilin Hong Kong and China Gas Co Ltd. In IGEM Young Persons Paper Competition

20072007

�� Analysis Analysis the estimated effects on thethe estimated effects on the capital cost occurredcapital cost occurred under under CNG transportation mechanism in the time of implementing the CNG transportation mechanism in the time of implementing the Pipe line transportation mechanism. Pipe line transportation mechanism.

CNG tracks as CNG tracks as partial solution partial solution

for YGC to transport NG to City Gas Yemen for YGC to transport NG to City Gas Yemen

�� Sana’a ( the capital of Yemen) is the biggest city in Yemen, it is Sana’a ( the capital of Yemen) is the biggest city in Yemen, it is the most crowded area in the country by population , auto the most crowded area in the country by population , auto transport , and commercial activates. It has a number of small transport , and commercial activates. It has a number of small industries which will need NG as a clean fuel. The distance industries which will need NG as a clean fuel. The distance between location of NG production and processing and Sana’a between location of NG production and processing and Sana’a City is about City is about 200 200 KM, the additional distance inside Sana’a city KM, the additional distance inside Sana’a city is around is around 30 30 KM. KM. is around is around 30 30 KM. KM.

�� NG is processed in the field using the technologies including:NG is processed in the field using the technologies including:

1.1. FiltrationFiltration

2.2. DryingDrying

3.3. Removing the heavy compositions by Cryogenic Plants ( i.e. Removing the heavy compositions by Cryogenic Plants ( i.e. LPGLPG & & CC55+)+)

4.4. ReRe--injection of Gas to the reinjection of Gas to the re--injection wells in the field under injection wells in the field under high pressure (high pressure ( 60006000 ~ ~35003500 Psia)Psia)

�� CNG Tracks mechanism for NG transportation will supply NG CNG Tracks mechanism for NG transportation will supply NG to the consumers having two conditions: to the consumers having two conditions:

11. reasonable distance :. reasonable distance :

The reasonable distance will be measured using the following The reasonable distance will be measured using the following criteria: criteria:

[[The distance, Road type ( on land or on mountains), volume of The distance, Road type ( on land or on mountains), volume of consumption, frequent demand for supply, operating cost, consumption, frequent demand for supply, operating cost, consumption, frequent demand for supply, operating cost, consumption, frequent demand for supply, operating cost, compotation of other fuel prices in the area]. compotation of other fuel prices in the area].

22. reasonable consumptions:. reasonable consumptions:

This will include homely uses, Auto transport, Commercial This will include homely uses, Auto transport, Commercial

and small industrial units ( Power market in the city. and small industrial units ( Power market in the city.

CNG Project implementation CNG Project implementation Mechanism In YemenMechanism In Yemen

�� There are two sources for obtaining CNG: There are two sources for obtaining CNG:

�� Source Source 11) CNG from Re) CNG from Re--injection equipment units exists currently in the field injection equipment units exists currently in the field

-- ReRe--injection equipments unit exists currently in the field represent the Mother injection equipments unit exists currently in the field represent the Mother

station for CNG Project for city Gas Yemenstation for CNG Project for city Gas Yemen

-- In the field , Filling unit for filling the CNG tracks will be constructed In the field , Filling unit for filling the CNG tracks will be constructed -- In the field , Filling unit for filling the CNG tracks will be constructed In the field , Filling unit for filling the CNG tracks will be constructed

-- Compressors operating costs is the same which is used for reCompressors operating costs is the same which is used for re--injection to the wells.injection to the wells.

-- CNG storage tanks in the Filling unit will receive the gas as filtered , dry and CNG storage tanks in the Filling unit will receive the gas as filtered , dry and

pressured NG.pressured NG.

�� Source Source 22) CNG from High pressure Dry NG exists currently in the field :) CNG from High pressure Dry NG exists currently in the field :

-- In the field, Filling unit for filling CNG tracks will be constructed by the same In the field, Filling unit for filling CNG tracks will be constructed by the same mechanism of source (mechanism of source (11) except the storage mechanism which should include gradual ) except the storage mechanism which should include gradual storage tanks for disposal of the expected liquids. In this source there is high pressure storage tanks for disposal of the expected liquids. In this source there is high pressure separator which will provide the high pressure NG.separator which will provide the high pressure NG.

-- Operating costs will be exists excluding the cost for compression. Operating costs will be exists excluding the cost for compression.

According to the options (According to the options (11& & 22) ,as sources, it ) ,as sources, it is possible to complete equipping the mother is possible to complete equipping the mother station in the location of CPU to be supplied station in the location of CPU to be supplied also from the production unit in (Alalso from the production unit in (Al--Raja gas Raja gas field), which work with parameters of The field), which work with parameters of The Feed Gas as shown next Feed Gas as shown next ::Feed Gas as shown next Feed Gas as shown next ::

parameters & parameters &

composition of the composition of the

Natural GasNatural Gas

fromfrom

(Al(Al--Raja gas field)Raja gas field)

Component Mole %

Argon 0.0045

Nitrogen 0.0914

Propane 1.9764

Methane 91.7042

iso-butane 0.2422

n-butane 0.4354

Carbon Dioxide 0.2396

iso-pentane 0.0953

(Al(Al--Raja gas field)Raja gas field)Ethane 5.0108

n-pentane 0.0922

2,2-dimethylbutane 0.0019

2,3-DMB 2-MP 0.0219

3m-pantane 0.0093

n-hexane 0.0216

Methylcyclopentane 0.0095

Heptane+ 0.0439

Totals: 100.000

Specific Gravity at 60F 0.6164Specific Gravity at 60F 0.6164

BTU per SCF 1099.6499BTU per SCF 1099.6499

Gallon per MCF 17.6931Gallon per MCF 17.6931

Vapor Pressure of the Mixture PSI 4448.2850Vapor Pressure of the Mixture PSI 4448.2850

The track ( Medium volume) is filled by NG up to pressure

200 ~ 240 bar within approximate one hour.

-The Gas volume (Filled) to the CNG track ≈ 4500 m³ ≈ 3240 kg

Upstreamvolume in the CNG capsules ≈ 23 m³

1. Filling Mechanism of CNG Tracks

From CPU + RGC

Gas FieldMother Station

(CPU + RGC)Truck

capsules ≈ 23 m³The volume of NG is minimized about 200 times in the CNG capsules.

2. CNG tracks for supplying homely used2. CNG tracks for supplying homely used

-The track arrives to the daughter station which work for pressure reduction

-The daughter station is connected to the CNG track

-CNG gradually move to the daughter station through regulators for pressure reduction and heating for reducing of Jull-Thompson's effect

- The Daughter station is connected to the Grid

GridTruck Pressure reducing

Downstream

33. CNG Auto transport station mechanism . CNG Auto transport station mechanism

--The CNG tracks arrives to the CNG Filling station with The CNG tracks arrives to the CNG Filling station with

pressure higher than the station’s pressure.pressure higher than the station’s pressure.

-- The CNG tracks is connected to the CNG Filling station at The CNG tracks is connected to the CNG Filling station at supply point supply point

-- The CNG moves to the CNG Cars station by effect of pressure The CNG moves to the CNG Cars station by effect of pressure

difference.difference.

-- CNG tracks with high pressure help for saving the electricity CNG tracks with high pressure help for saving the electricity -- CNG tracks with high pressure help for saving the electricity CNG tracks with high pressure help for saving the electricity use.use.

CNG track as mobile station for CNG vehicles

--The track tanks can be divided into three independent The track tanks can be divided into three independent

storage units which are used for gradually filling the storage units which are used for gradually filling the

vehicles by effect of pressure difference without using vehicles by effect of pressure difference without using

the compressors. the compressors. the compressors. the compressors.

CERs requirements CERs requirements

andand

Scientific overview Scientific overview

The principle of CDMThe principle of CDM

For keeping clean environmentFor keeping clean environment

under uses of gas as energy in the citiesunder uses of gas as energy in the cities

- What is the principle of the Clean Development Mechanism (CDM)?

For keeping clean environmentFor keeping clean environment

It is a mechanism applied between industrialised and development countries. The purposes of CDM are:

1- Helping development countries: for realizing continuous development.

2- Helping the industrial countries: for achieving its obligations for emission reduction.

Plans &

The possibilities of projects and investments in City Gas YemenThe possibilities of projects and investments in City Gas Yemen

Ambitions

Towards City Gas Yemen Towards City Gas Yemen

* Plans -YGC is planning for NG transportation for domestic use as clean energy in Yemen Cities for:

- transport, - residential,


Yemen’s Plans and ambitions for investments in city Gas projectsYemen’s Plans and ambitions for investments in city Gas projects

- residential,- industrial and - commercial needs

* Ambitions-YGC ambition is to utilize the natural gas domestically for all possibilities of projects specially for industrial projects.

Investment Facilities


Facilities

In Yemen

Yemen Investment law Yemen Investment law 2002 2002 granted for the foreign investors granted for the foreign investors the following: the following:

•• Yemen Government granted freedom of investment for the Yemen Government granted freedom of investment for the

investors.investors.


* What are the Yemen’s investment facilities for investors in City Gas Projects?* What are the Yemen’s investment facilities for investors in City Gas Projects?

• • Equality of the foreign and Arab investors with the local Equality of the foreign and Arab investors with the local

investors in relation to rights and obligations as well as investors in relation to rights and obligations as well as the rules and procedures.the rules and procedures. ( Article ( Article 55))

•• Granted for the local and foreign investors the rights of Granted for the local and foreign investors the rights of

investment and buy lands or buildings owned by investment and buy lands or buildings owned by government or private sector to be used for the purposes government or private sector to be used for the purposes which are registered for.which are registered for. ( Article ( Article 77) )

•• Granted the rights for managing their projects according to Granted the rights for managing their projects according to

their estimations of the economic conditions and their their estimations of the economic conditions and their activities status.activities status. ( Article ( Article 1010) )

•• Exemption of the products of the projects from the Exemption of the products of the projects from the


•• Exemption of the products of the projects from the Exemption of the products of the projects from the

obligatory of pricing and profits determination.obligatory of pricing and profits determination. ( Article ( Article 1212) )

•• The law prohibited the nationalization or domination on the The law prohibited the nationalization or domination on the

projectsprojects. . ((ArticleArticle1313))

• • The law prohibit reserving the projects funds unless The law prohibit reserving the projects funds unless

judged by court.judged by court. (Article (Article 1313/b)/b)

•• The law granted exemption of projects from the taxes of The law granted exemption of projects from the taxes of

the profits resulted from the exports revenues, after expiry the profits resulted from the exports revenues, after expiry of the exemption which granted for the project, with of the exemption which granted for the project, with condition that it should be transferred to Yemen by foreign condition that it should be transferred to Yemen by foreign currency through recognized Bank. currency through recognized Bank.

•• Refunding all the customs’ taxes and dues, what ever, Refunding all the customs’ taxes and dues, what ever,


•• Refunding all the customs’ taxes and dues, what ever, Refunding all the customs’ taxes and dues, what ever,

paid for the imported items which becomes part of the paid for the imported items which becomes part of the exports.exports.

•• The law granted the rights for the investors to export The law granted the rights for the investors to export

either by own or by intermediate without license or either by own or by intermediate without license or recoding in the exporters record. recoding in the exporters record.

•• In theIn the ( Article ( Article 1818), ), The projects are exempted of the customs taxes The projects are exempted of the customs taxes

and dues for the fixed assets which are imported for constructing, or and dues for the fixed assets which are imported for constructing, or extending or developing of the project.extending or developing of the project.

•• For determining the For determining the needs of the project of fixed assets and needs of the project of fixed assets and

production needs to be imported and exempted of customs taxes and production needs to be imported and exempted of customs taxes and dues: dues: Article Article 1818/b), /b), consideredconsidered the “ Project needs statements issued by the the “ Project needs statements issued by the


Article Article 1818/b), /b), consideredconsidered the “ Project needs statements issued by the the “ Project needs statements issued by the respected authority” for importing the needs of the project of respected authority” for importing the needs of the project of exempted fixed assets and production needs without agreed ofexempted fixed assets and production needs without agreed of any any other government office. other government office.

•• 7 7 years and other additional years and other additional 7 7 years for extended projects are granted years for extended projects are granted

for exempting the projects from profit taxes.for exempting the projects from profit taxes. (Article (Article 2020//11/a)/a)

•• Granted tax exemption on the project lands.Granted tax exemption on the project lands. (Article (Article 2020//22/a)/a)

Procedures Procedures &&


&&LegislationsLegislations

For Acquisition of City Gas projects in YemenFor Acquisition of City Gas projects in Yemen

The procedures: The procedures: Simple procedures for acquisition the projects in Yemen including:Simple procedures for acquisition the projects in Yemen including:1.1. MOUMOU2.2. Negotiation/ bidding Negotiation/ bidding 3.3. Contract between the investor and government representativeContract between the investor and government representative4.4. Approval by MOM / Approval by GovernmentApproval by MOM / Approval by Government


What are the procedures and legislations for awarding the projects of City Gas Yemen?What are the procedures and legislations for awarding the projects of City Gas Yemen?

The legislations: The legislations: -- Investment lawsInvestment laws-- Commercial LawCommercial Law-- Customs lawCustoms law-- Tax lawTax law-- The signed contractThe signed contract-- The accepted international standards technically and financiallyThe accepted international standards technically and financially

11. . NG can be transported to city gas by one of many means of NG can be transported to city gas by one of many means of transportationtransportation

22. The environment and safety requirements should be considered for . The environment and safety requirements should be considered for NG transportation, storage, and uses.NG transportation, storage, and uses.

33. CDM represent an important principle for our environment.. CDM represent an important principle for our environment.

Summary Summary

44. The proved resaves of NG in Yemen Justifies using of NG instead of . The proved resaves of NG in Yemen Justifies using of NG instead of other fuel in City Gas Yemen.other fuel in City Gas Yemen.

55. Yemen Gas Company has ambitions to implement many projects for . Yemen Gas Company has ambitions to implement many projects for obtaining clean energy for various uses in City Gas Yemen obtaining clean energy for various uses in City Gas Yemen

66. Yemen’s laws and regulations encourages the investments in . Yemen’s laws and regulations encourages the investments in petroleum Industry including the projects related to City Gas Yemen.petroleum Industry including the projects related to City Gas Yemen.

77. Pipe line transportation of NG for City Gas Yemen represent the . Pipe line transportation of NG for City Gas Yemen represent the optimal method for transportation but it may take a number of years optimal method for transportation but it may take a number of years for implementation due to economic reasons.for implementation due to economic reasons.

88. CNG tracks can be good option for starting the CNG uses in Yemen . CNG tracks can be good option for starting the CNG uses in Yemen cities.cities.

99. The constructions that will be built for City Gas Yemen under CNG . The constructions that will be built for City Gas Yemen under CNG tracks transportation can be used in the time of pipe line tracks transportation can be used in the time of pipe line implementation.implementation.

1010. The CNG tracks in the time of pipe line implementation can be . The CNG tracks in the time of pipe line implementation can be used to serves the areas which are a way from the pipe line and used to serves the areas which are a way from the pipe line and can be used as mobile filling station for CNG vehiclescan be used as mobile filling station for CNG vehicles

1111. More studies about usage of NG in Yemen are needed.. More studies about usage of NG in Yemen are needed.

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yemen gas company

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