Qatar Shelves $6.5bn Al-Karaana Project, QP Rethinking Ethane Usage

Qatar has scrapped both its key petchems expansion projects – totaling $12.5bn. The emirate is not immune to spending cuts in the face of collapsing oil prices.

Qatar Petroleum and Shell have decided not to proceed with the Al-Sejeel ethylene glycol project at Ras Laffan, which was expected at the time of the front-end engineering design (FEED) award to cost $6.5bn. The decision means that the bulk of Qatar’s planned petrochemicals expansion has now been effectively scrapped, following September’s decision to “put on hold” the $6bn Al-Sejeel polymers project.

Shell’s 14 January statement about cancelling Al-Karaana says: “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.”


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