Total-led group in $2.8 bln Yemen LNG financing

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DUBAI, May 20, (Reuters) - A group led by French oil major Total (TOTF.PA: Quote, Profile, Research) said on Tuesday it had signed a $2.8 billion financing package for a Yemeni liquefied natural gas (LNG) project.

Total is the main sponsor for the $4 billion liquefaction plant in the port of Belhaf, on the southern coast of Yemen.

The project will produce 6.7 million tonnes per year of LNG and is 75 percent complete, Yemen LNG said in a statement.

LNG is gas chilled to its liquid form for export, usually on specially designed tankers.

The project financing comprises $1.7 billion in a senior limited recourse facility -- so called because lenders are repaid from project cash flows and have limited recourse to the sponsors' balance sheets -- as well as a $1.1 billion loan that has a guarantee from Total.

As well as Total, the project is sponsored by the U.S. Hunt Oil, Yemen Gas Co, SK Energy Co (096770.KS: Quote, Profile, Research), Korea Gas Corp (036460.KS: Quote, Profile, Research) (KOGAS), the General Authority for Social Security and Pensions of Yemen and Hyundai. (Writing by John Irish; Editing by Sue Thomas)