In late August 2005, the Yemeni government approved the development plan for Yemen LNG (YLNG), a large-scale
liquefied natural gas project led by Total. The way in which the project has been developed shows how the impact on the community, the environment and the local economy have been taken into account from the outset, in line with our principles and standards.

Yemen LNG at a Glance

Scheduled for commissioning in late 2008, the YLNG plant will produce liquefied gas for export by LNG carrier. Located in the port of Balhaf on Yemen's southern coast, the two-train facility will have a total capacity of 6.7 million metric tons a year. It will be supplied with gas piped 325 kilometers from the Block 18 fields in the Marib region, about 180 kilometers east of the capital, Sanaa.







Skills Transfer and Local Jobs

The YNLG project is expected to create several thousand local jobs during the three-year construction phase and around 500 during its 25-year lifetime. It will therefore help to drive local economic development, in particular through the Yemenization of teams. Eventually, 90% of positions will be held by Yemeni nationals.
To meet this target, YLNG has launched a major regional andnational recruitment drive. Yemenization is also covered by specific clauses in agreements with contractors and suppliers. Training and skills transfer programs support the process.
The Yemenis recruited by YLNG will hold operational, administrative, support and management positions. YLNG will hire expatriates only when it cannot find the skills required in Yemen. Over a five to ten-year period, expatriates will gradually be replaced by Yemenis, especially in the senior management team.

Comprehensive, Up-to-Date Impact Assessments

Extremely detailed impact assessments were conducted prior to selecting the sites for the YLNG facilities. They are critical to managing the environmental and social issues raised by major projects.
The location of the liquefaction plant and the gas pipeline route were approved by the Yemeni government based on an initial environmental and social impact assessment performed in 1997.
Balhaf was selected over eight other sites as the best location for the liquefaction plant because of the characteristics of its coastline. The water depth and protection against tides at the construction site eliminate the need to drain the land and build a protective dike.
The option of using the existing pipeline route from Shabwa to Rudhum was examined, but would have required enlarging the security zone. In contrast, a direct line between the gas field and the coast is shorter and does not run through inhabited areas. The route selected therefore minimizes the pipeline's impact on the local population.
A study was carried out in 2001 to learn more about local Yemeni society and collect more detailed archeological data. It uncovered several sites along the pipeline route that call for historical preservation, most of them dating from the Bronze Age.
Because the Yemen LNG project was suspended between 2002 and 2004 in response to global developments in the natural gas market, the assessments had to be made current. Begun in March 2005 and conducted in accordance with World Bank criteria, a complete impact assessment updated and added to previous reports, notably by covering in more detail issues related to maintaining marine biodiversity. It was published in February 2006.

Safety, A Top Priority

As with any industrial project, safety is a core concern. In keeping with Total practices, instilling a culture of safety among YLNG personnel and contractors is a priority at all stages in the process. As technical leader for the project, Total will ensure that partners, contractors and suppliers comply with our Safety Environment Quality Charter.

Attention to Impact on Neighboring Communities

The plant site is owned by the government and there are no permanent residents. As a result, construction should not require expropriation. In contrast, the security zone created around the plant site encroaches on local fishing grounds. YLNG has therefore asked MacAlister Elliott & Partners Ltd (MEP), a consulting firm that is very familiar with traditional fishing in Yemen, to conduct a socioeconomic and technical study to help it find a fair and equitable solution to the problem.

Although the pipeline route was designed to minimize overlap with populated and agricultural areas, around four hectares of  farmland along its 325-kilometer length will have to be expropriated. A special committee set up by national and regional authorities will manage compensation. YLNG will be represented on the committee and will ensure that owners are compensated in accordance with World Bank standards.
To foster ongoing dialogue with stakeholders for the duration of operations and facilitate the plant's integration into the local environment, YLNG has created a Sustainable Development team. This group has already sought input from all levels of the community, including area residents, regional government representatives, the ministries involved and certain international players, such as NGOs and embassies. The team is working with specialized organizations on several topics: besides having MEP look into the fishery issue, it has solicited the help of the French Red Cross and Yemeni Red Crescent to identify drinking water needs along the pipeline route and in the Balhaf region.

Environmental Monitoring and Protection

Environmental assessments have highlighted the diversity of coral and fish in the area of operations. We have drawn up site maps and construction plans to limit our impact on local marine life and currents. Cooling water is discharged far enough out at sea to avoid significant impact on water temperature.

In broader terms, the impact on biodiversity will be very limited during operation of the facility. However, construction may affect a small portion of the coral reefs. Independent observers will monitor the situation during and after construction. YLNG will do more than simply limit the impact of its activities. It also wants to actively help to protect the Yemeni environment, and has therefore contacted the national environmental protection authority about making a financial contribution to the implementation of the Coastal Zone Management Plan.