Growing regional competition, especially from Oman and Iran, has been the most significant obstacle to developing LNG for export. In Yemen, costly transportation of the gas from the countrys rugged interior, combined with additional security measures, increases production costs. In 2002, in order to encourage investment in commercial Natural Gas development, the government began offering 25-year purchase price agreements that lowered the price of natural gas to $0.50 per million Btu. Facing slow progress in export-oriented production, the Yemeni government is now considering developing natural gas for domestic electricity generation and petrochemical production. In May 2004, more than 25 companies bid on a domestic gas utilization and Pipeline feasibility study for a proposed 373-mile pipeline that would transport gas from Marib to a planned 300-MW power station at Mabar. The World Bank, in cooperation with the Yemens National Coordination Council, is funding this study.