Yemen Balhaf Terminal Stopped Operations
Following Yemen's lifted force majeure on liquefied natural gas (LNG) deliveries from its Balhaf plant, the facility stopped operations on Sunday, and evacuated foreign experts from the facility, Reuters informed.
Yemeni government announced force majeure on the Balhaf terminal, operated by France's Total, following the collapse of the government and the deteriorating security in the country.
By doing so, they essentially allowed buyers or sellers to go back on previously made commitments due to events beyond their control.
The last vessel to leave the LNG facility was the GDF Suez Point Fortin, and the Marib Spirit, which was on its way to Balhaf, was diverted to Middle East.
The Balhaf gas export terminal ships LNG primarily to Asia and to some European countries. The terminal delivers gas under long-term contracts to South Korea’s Kogas, France’s Total and GDF Suez.
The $4.5bn Balhaf plant is Yemen's biggest industrial complex, which has a combined capacity to produce 6.7mn tons of LNG a year.
Force majeure is a clause in contracts that allows buyers or sellers to renege on commitments due to events beyond their control.
Yemen’s government generates the vast majority of its revenue through oil and gas exports.
The president’s resignation on Thursday plunged the country deeper into chaos, Reuters reported.
