Total, a France-based international oil and gas group, said it planned to start production at its Yemen liquefied natural gas (LNG) project next month, its chief executive said on Wednesday.

"The first cargo is October," Christophe de Margerie told reporters at the sidelines of the Offshore Europe oil conference.

The second processing unit in the project will start up 12 months later, the CEO added.

In July, Yemen LNG chief executive Joel Fort said the first cargo from the plant which turns gas produced in Yemen into liquid for export in pressurised tankers, was delayed to mid-September from August due to minor technical problems.

Total expects to make a decision to proceed with a project to exploit the Laggan and Tormore gas and condensate fields offshore North-West of the Shetland Islands next year, de Margerie said.

"We are going to decide the launching of Laggan-Tormore probably by middle of 2010 .. there is no reason why we should not succeed," he said.

Total does not plan to delay or stop the upgrade of its Port Arthur refinery in the US, he added. – Reuters