Yemen has declared force majeure on liquefied natural gas (LNG) deliveries from its Balhaf plant as the security situation in the country deteriorated on Thursday following the government’s collapse, sources told Reuters.
The source said “the government instructed Yemen LNG not to shut down the plant but to prepare to lower production and … declare force majeure”.
The 6.7mn tonne per year Balhaf gas export terminal is run by and ships LNG primarily to Asia and to some European countries.
Total was not immediately available to comment. The terminal delivers gas under long-term contracts to South Korea’s Kogas, France’s Total and GDF Suez.
“When you reduce your production, the next cargoes will be delayed. Then you reschedule your offtakes with your buyers, Kogas did that already,” the source said.
Force majeure is a clause in contracts that allows buyers or sellers to renege on commitments due to events beyond their control.
Yemen’s government generates the vast majority of its revenue through oil and gas exports.
The president’s resignation on Thursday plunged the country deeper into chaos, Reuters reported.
