With reserves of 16.9 trillion cubic feet (Tcf), Yemen has the potential to become a commercial producer and exporter of natural gas. The bulk of Yemens gas reserves are concentrated in the Marib-Jawf fields (Block 18).  In 2003, there was no production of natural gas in Yemen, despite longstanding plans to develop an export-based natural gas industry. Currently, the gas extracted as by-product of oil production is reinjected.
Since the mid-1990s, a primary interest of Yemeni natural gas development has been focused on the export of liquefied natural gas (LNG). In 1997, TotalFinaElf (now Total, with a 42.9 percent stake), Yemen Gas Company (23.1 percent), SK Engineering (10 percent) and Hyundai Heavy Industries (6 percent) established Yemen LNG. In June 2002, the proposed project suffered a major blow, when ExxonMobil and Hunt Oil announced that they were leaving the consortium. Hunt (18 percent stake), however, later retracted its withdrawal. In August 2005, after various setbacks, Yemens government approved three LNG supply agreements -- for 6.7 million tons per year -- with KOGAS (1.3 million tons per year), Total (2 million tons per year), and Tractebel (2.5 million tons per year). In early September 2005, the government awarded an engineering, procurement and construction contract for the project. First shipments of LNG could be made available by late 2008, with gas likely to flow to the United States and South Korea. Gas for the LNG project will come from the Marib-Jawf field operated by Hunt. Infrastructure includes three pipelines from the fields at Marib and a two-train liquefaction plant at the Arabian Sea port of Balhaf, south of Al Mukalla.