Economy-Industry,Yemen

In northern Yemen industry traditionally has been based on food processing., but this subsector has suffered from poor productivity of agriculture and reliance on imported raw materials.Building materials, textiles, leather wear, jewellry, and glass making are other industries in the north.The largest industry in Southern Yemen is petroleum refining.Southern manufactures include clothing, processed food, metal products, soap, and perfumes . Industrial production accounts for 40% of GDP (1998 est).Yemen's main refinery at Aden processed 60,000 barrels of petroleumper day in 1994after sustaining damage in the civil war .Output reached 100,000barrels per day by the start of 1995 with the repair of the main pumping station and two tapping units. That year, the refinery produced 26.5 million barrels of kerosene. In 2002, Yemen's total refinery capacity is 130,000 barrels per day, most from the 120,000barrels per day capacity. Aden refinery operated by the Aden Refinary Company (ARC), and the rest from a 10,000 barrels per day refinery at Mariboperated by Yemen Hunt Oil Company. In Dec 2002, the govt signed an agreement with the Hadramawt Refinery Company, a Saudi Venture , for the construction of a 50,000-barrels per day refinery at Al Mukalla costing $450 million. yemen's considerable natural gas reserves  - estimated at 480 billion cu m (16.9 trillion cu ft), have not been developed . A liquefied natural gas project was initiated in 1995 by Total Fina Elf and several other major multinational oil companies, which established the Yemen Liquefied Natural Gas Company (Yemen LNG). To date, however, the company has not been ableto locate enough credit-worthy buyers of the output that it could sign up for the period of 20years of more generally needed to justify the large capital outlays for liquefication and port facilities, and LNG tankers. In June 2002, two US compnies, Exoon Mobil and Hunt Oil, announced they were leaving the consortium. Shortly after Yemen extended approval for an additional four years.       Refugee crisis looms in Yemen-09oct09