Qatar Petroleum and Shell have decided not to proceed with the proposed Al Karaana petrochemicals project and to stop further work on the project, according to a statement issued by Shell
An evaluation of commercial quotations from EPC (engineering, procurement and construction) bidders showed that high capital costs would make it commercially unfeasible, particularly in the current economic climate prevailing in the energy industry, the statement said. The Al Karaana project was initiated with a Heads of Agreement (HOA) between QP and Shell in December 2011, and envisioned the construction of a new 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 per cent QP, 20 per cent Shell).QP and Shell’s existing partnerships include Pearl GTL, the world’s largest integrated gas-to-liquids plant located at Ras Laffan, as well as Qatargas 4, an integrated Liquefied Natural Gas (LNG) asset. The two companies also have joint downstream and upstream investments in Singapore and Brazil.
In a separate statement, Qatar Petroleum says that it will be conducting feasibility studies to assess the ethane feedstock now made available in co-operation with the Qatar Petrochemical Company (QAPCO), Qatar Chemical Company (Q-Chem) and Ras Laffan Olefins Company (RLOL), with the aim of expanding and developing the petrochemicals plants with Industries Qatar (IQ) and Mesaieed Petrochemicals Holding Company (MPHC).
According to QP this step was motivated by efforts to “achieve the best utilisation of Qatar’s natural resources, particularly in the petrochemical sector and in a manner that supports local industries and maximises its contribution to the national economy.”
