Our projects

Yemen LNG
Building Yemens first LNG plant

Establishing Yemen LNG as an international Liquefied Natural Gas supplier

The monetisation of Yemens natural resources has been the countrys focus since the 1990s.
In August 2005, the Yemen LNG project was launched. It is the single largest investment project in the industrial history of Yemen, for a total value of almost 4.5 billion dollars. The project involved: A 320-km long pipeline from the Marib gas field, in Central Yemen, to the coast. A 2-train liquefied natural gas plant in Balhaf, on the Gulf of Aden, 200 km South-West from Al-Mukalla.

Saudi Arabia

Yemen
Yemen LNG
ian Arab S ea

A challenge for the Technip-led joint venture

Client: Yemen LNG Company Ltd (YLNG) with partners: Total (Project Leader with 39.62%), Hunt Oil (17.22%), Yemen Gas Company (16.73%), SK Corporation (9.55%), Korea Gas Corporation (6%), Hyundai Corporation (5.88%) and Yemens General Authority for Social Security & Pensions (5%) LNG plant Contractor: Yemgas, a Technip-led joint venture equally shared between Technip / JGC / KBR Lump sum turnkey contract awarded in September 2005 Global LNG production capacity of 6.7 Mtpa Steady production since November 2009 (train 1) and March 2010 (train 2)

In September 2005, Yemgas, the Technip-led Joint Venture equally shared between Technip, JGC and KBR was awarded the engineering, procurement and construction contract for the 2-train LNG plant including utilities and offsites.
Train 1 has been in operation since October 2009 with the first LNG carrier loaded early November, whereas Train 2 came on stream in March 2010. The Balhaf site, on the Southern coast of Yemen, was chosen for the LNG facility because it offers a natural harbour, protected from the monsoon's wind gusts and sea swells. It is also a strategic location at the crossroads of international maritime routes. The output from the plants requires the movement of 100 LNG carriers per year, to deliver the LNG to Asian, European and American markets.

Yemgas project scope

Underpinning this achievement meant meeting a fantastic challenge made possible by the commitment of the Technip-led joint venture over several years.

It all started in the 1990s when Technip and its partners carried out the FEED studies for the project. In September 2005, Yemgas signed the Engineering, Procurement and Construction contract with Yemen LNG Company Ltd for the LNG plant: Engineering, procurement, construction, commissioning and start-up of 2 liquefaction trains with a total capacity of 6.7 million tonnes of liquefied natural gas per year. Air Products C3/MR process, with the refrigerant compressors in Split MR configuration to maximise production from the two GE Frame 7 gas turbine drivers. 2 full containment storage tanks of 140,000 m3 each. An 800-m long jetty. Overall construction supervision of the entire facilities / utilities. Large-scale infrastructure requirements.

This project confirms Technip among the first tier of EPC contractors in LNG
In 2009 and 2010, through the delivery of projects including Yemen, Technip will have delivered 57 million tonnes per year of LNG capacity to its clients, including the worlds largest LNG trains in Qatar.
Technip will have been involved in adding around one third to the worlds LNG production capacity. Supported by outstanding Project Management skills and a strong organisation, Technip is capable of managing several of these gigantic grassroots projects simultaneously, even in remote locations where infrastructure is not completely adapted and most of the material needs for the project have to be brought in. The Yemen LNG contract is one example of Technips leading position among the first tier of EPC contractors in LNG: FEED studies LNG train detailed engineering Utilities / Facilities construction supervision Joint Venture leadership

140 out of the 208 Technip staff Balhaf April 2009

The team

In March 2008, at the peak of construction, some 9,200 people from 72 nationalities were working on the construction of the liquefaction plant. The Yemgas management team was just over 200 strong from 35 nationalities.

Outstanding Security
The know-how developed by the Technip Security division over recent years on other projects allowed a site-specific programme to be successfully deployed at Balhaf with several innovative measures. The quality of the programme has since been recognised by many external parties.
Security of Personnel consisting of a Meet & Greet procedure, a Travellers booklet, accommodation audits and inspections, Security and Cultural induction programs on site. Physical security measures (original concepts developed by Technip) Security Operations Room aiming at centralising all Security-related communications. Quick Response Team (QRT) consisting of a permanent Security Patrol inside the site. Main Gate, a pivotal access point in a project site where all personnel, equipment, materials and goods transit. Security toolbox Balhafs Security Master Plan detailing the responsibilities of each stakeholder. Established prior to opening the construction site. Appointment of permanent Subcontractor Security correspondents within the camps/worksites. Security Instruction book for operational support. Cultural and religious inductions within the Awareness Program.

HSE performance
The project recorded periods of up to 15 million hours without Lost Time Injury (LTI).
A massive HSE training programme was central to achieving this result. The site HSE Departments mission was to work on the process of improving peoples behaviour as the main way to improve overall project HSE statistics. Various training modules were provided both in English and Arabic to maintain constant safety awareness: Site HSE induction Defensive driving Confined space entry Working at heights Commissioning & start-up safety

Yemen LNG

The projects main challenges

To make the Yemen LNG project the success that is, Technip had to overcome several challenges over the 4 years between contract award and start up:
Construction market tightness in 2005. At the time of the project launch, several other LNG projects were underway worldwide, reducing the availability of skilled labour, construction materials and equipment and making it more difficult to predict costs and schedule. Technology-intensive and large-size plant in a remote location. Each train is using the Air Products C3/MR process. Large-scale infrastructure which required building: a harbour to receive industrial equipment from 60 shipments an airport for employee transfer a city to accommodate 10,000 people during construction phase and 700 permanent staff during operations Security: building such a high-technology industrial project in a location like Balhaf represented a challenge due to the remoteness of the site, its shorefront on the Gulf of Aden and the duration of the construction phase (4 years). Ensuring the security of personnel (whether Client, staff, contractors, visitors or Government bodies) and of the facilities (plants, harbour and vessels, airport, and equipment) was at the forefront of Technips concerns.

Major success factors

Careful planning with a good quality FEED and early realisation of the scale of the challenges. The selection of proven technologies, equipment and partners from the global LNG supply chain. First rate project management and allocation of appropriate resources in conventional and less conventional project management domains. Pre-negotiated contracts for site preparation and certain critical equipment items that were assigned to Yemgas at EPC contract award. A spirit of co-operation: enthusiasm, dedication and hard work of a diverse multicultural workforce. The support of Yemeni authorities and local population.

HEADQUARTERS Technip 89 avenue de la Grande Arme 75773 Paris Cedex 16 France Phone: +33 (0)1 47 78 24 00 LNG / GTL Product Line Phil Hagyard, SVP Phone: +33 (0)1 47 78 27 17 Email: phagyard@technip.com

www.technip.com

Sustainable Development actions

Purchases in Yemen
Most of the plant technical items (pressure vessels, machinery, columns etc.) were imported due to local unavailability. However, Technip through its Yemgas joint venture implemented at very early project stages a procurement policy to favour local supply of goods and services available in Yemen such as: office stationery and furniture, computers and printers, site consumables, office cabins, air conditioning units, vehicles, safety equipments, telecommunications etc.

Local subcontractors
One of the Yemgas objectives was to ensure that the local business community took part to the realisation of the project. In this way, several million dollars were allocated to local companies who had the opportunity to discover and develop modern industrial techniques and management. Camp landscaping and irrigation system for both Client and Contractor camps. Water management: the Balhaf site produces its own water (except drinking water). Waste recycling: Yemgas contracted a local company for site domestic and vehicle wastes. Waste donations such as timber, steel and cables.

Recruitment of Yemenis
Providing employment to local communities has been a main objective and achievement. Over the life of the project, it is estimated that almost 13,000 Yemenis have come and obtained a position within the team: office and field positions requiring technical and English language skills, engineers, industrial relationships, labour, supervisory positions in civil and piping works etc.

Knowledge transfer
In order to share the experience of industrial projects among the Yemenis present on site and give them marketable skills, Technip through its Yemgas joint venture organised a wide training campaign in different fields: HSE, quality management, English, camps and catering etc.

This document is the property of Technip and is not intended to be a binding contractual document. Any information contained herein shall not result in any binding obligation on the part of Technip, or any of its affiliates, and is provided for information purposes only. Technip - Group Communications - March 2011 - Photo credits: Technip