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FINANCIAL NEWS
Qatar Petroleum, Shell halt USD6.4b project
15 Jan 2015
(MENAFN) Qatar Petroleum said that it has decided to not proceed with the USD6.4 billion Al-Karaana petrochemical project, which it was planning with Shell, thus becoming the region’s second big energy project to be halted since oil prices began to plunge late last year, Arab News reported.
“Prices quoted by contractors to build the huge complex showed the project was commercially unfeasible, particularly in the current economic climate prevailing in the energy industry,” the two companies said in a joint statement.
The project, which both companies agreed upon in December 2013, was supposed to include building a petrochemical complex in the Ras Laffan Industrial City, with the Qatari company owning 80 percent and Shell 20 percent.
Earlier this month, Saudi Aramco had suspended plans to build a USD2 billion clean fuels plant at its largest oil refinery in Ras Tanura.
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