Special to WorldTribune.com
ABU DHABI — Qatar has canceled a major petrochemicals project.
The state-owned Qatar Petroleum has canceled a project to develop a petrochemicals complex in Ras Laffan Industrial City.
Qatar and its partner, Royal Dutch Shell, determined that the Al Karaana project was too costly amid the plunge in the price of crude oil, brought about in part by the shale oil (fracking) revolution by private developers in the United States.
“The decision came after a careful and thorough evaluation of commercial quotations from EPC [engineering, procurement and construction] bidders, which showed high capital costs rendering it commercially unfeasible, particularly in the current economic climate prevailing in the energy industry,” Shell said.
In a statement on Jan. 14, Shell, a partner in the Pearl gas-to-liquids plant, said the project, launched in 2011, has been halted.
Al Karaana, with a capacity of 1.5 million tons a year, was planned as a huge petrochemicals complex, 80 percent of which owned by QP.
Another fracking casualty: Qatar cancels petrochem project added by World Tribune on
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