Shell and Qatar Petroleum drop petrochemicals project

Shell and Qatar Petroleum decided not to proceed with the Al Karaana petrochemicals project, stopping further work on the project following thorough evaluation. The two companies arrived at this decision after evaluation of commercial quotations from EPC (engineering, procurement and construction) bidders showed high capital costs  making it commercially unfeasible given the current situation in the energy industry.

The Al Karaana project was initiated by the two companies in December 2011, with plans to construct a world-scale petrochemicals complex in the Ras Laffan Industrial City north of Qatar. The complex was to be operated as a stand-alone QP-Shell joint venture (80% QP, 20% Shell).

QP and Shell’s existing partnerships include Pearl GTL – the world’s largest integrated gas-to-liquids plant located at Ras Laffan, which has boosted Qatar’s position as the world’s GTL capital. The partnerships also include Qatargas 4 -an integrated Liquefied Natural Gas (LNG) asset- in addition to joint downstream and upstream investments in Singapore and Brazil.