Daewoo E&C signs MoU with Yemen to develop LNG receiving terminal
South Korean engineering and construction firm Daewoo E&C has signed a memorandum of understanding (MoU) with Yemen's ministry of electricity and energy to develop an LNG receiving terminal and connecting pipeline in the Middle Eastern country, the company said on November 24.
The terminal will supply regasified LNG to power plants in the Little Aden region. Daewoo E&C and the Yemeni ministry have also agreed to collaborate on additional energy infrastructure projects, such as the construction of a 450 MW combined cycle power plant, in the future.
Daewoo E&C said that the construction of an LNG terminal and gas-based combined cycle power plant is necessary to address the rising power production costs of diesel-based power plants due to high oil prices. The company will leverage its expertise in LNG plant and power plant construction technologies to support the project.
Yemen has an LNG export facility at Balhaf, which has been shut down since 2015 due to the country's unstable security situation. France's TotalEnergies is the largest shareholder in the plant.