July 20, 2009

Yemen to replace Aden oil refinery

Yemen plans to replace an oil refinery in Aden to cope with rising oil demand and to develop chemical products made from petroleum, the government said Monday.

The existing refinery, in the port city whose ancient, natural harbor lies in the crater of an extinct volcano, is too old and small to respond adequately to demand, the official Yemeni government news agency Saba quoted the government as saying.

The economic committee of the Majlis al Shura, or consultative council, is studying the project under authorization from the country's Supreme Economic Council, Saba said.

Officials already discussed the new refinery proposals with Gov. Adnan al-Jafri, Saba said.

The oil refinery was turned over, along with a tanker port, to Yemen in 1977 by No. 3 energy company British Petroleum, now BP PLC, which established and operated the refinery.