YEMEN - Private Lubricants Marketing.

In June 1997, Yemen-British Lubricants Marketing Co. (YBLMC) was set up by BP, with 44% in the venture, and the local Thabet Group with 56%. YBLMC imports and distributes BP's lubricants.

Hayel Saeed Anam Group (HSAG) opened in 1996 a $20m oil and lubricants plant with a capacity of 60,000 t/y. A JV between HSAG (70%), ExxonMobil (15%) and Shell (15%), the plant's output is sold in the domestic market. HSAG and Shell have been partners for more than 50 years.

The LPG Market: Yemen consumes almost 500,000 tons/year of LPG, up from about 192,500 t/y in 1992. Local LPG consumption will rise considerably if gas plant capacities expand and could exceed 1m t/y by 2010.

Yemen used to import most of its LPG requirements from Saudi Arabia and other Middle East sources. Imports stopped after the coming on stream of LPG processing plants at the Alif and Asa'ad Al Kamil oilfields, in Maarib/Jawf region, with a capacity of 400 MCF/day. But imports were resumed in 2003.

The International Development Association in late 1995 helped finance an expansion of LPG storage facilities at the Safir plant and an increase in the number of LPG tanker trucks. This has raised Yemen's LPG offtake from 700 t/d to 1,000 t/d.

The financing was part of IDA's $12m credit to back the oil ministry's $18.6m programme to develop the petroleum sector. It was also to help in the privatisation of state companies including the Aden refinery. Other donors provided $5.2m towards the oil ministry's programme.