Yemen is a relatively new oil producer for the Middle
East. Production was established in 1986 from the Marib desert in the
former North Yemen and then in the eastern desert from the former South
Yemen in 1991. Output rose to a peak in 2002 before declining steadily
as the early larger fields deplete. Declines are expected to continue.
No gas is yet marketed with all associated gas being used at the fields,
flared or re-injected. However local demand is being created and an LNG
plant is due onstream in 2009, so it is forecast that Yemeni gas
production will and rise rapidly thereafter.
Yemen has no offshore production and none is forecast.
growth in Yemen has been relatively rapid and oil consumption has
increased steadily since the country was created in 1990. It is likely
to carry on expanding although growth is now being subdued as exports
decline. After 2014 slow declining consumption is forecast.
Gas consumption will begin in 2009. Gas will be used locally in
electricity generation whilst exports also commence from the LNG plant
built on the southern coast at Balhaf, from where LNG will be exported
at first to India.