MOSCOW (MRC) -- Qatar Petroleum and Shell have decided not to proceed with the proposed Al Karaana petrochemicals project, and to stop further work on the project, reported Shell on its site.
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.
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% 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.
As MRC informed previously, in 2013, Royal Dutch Shell took a final investment decision tol increase production capacity at its Singapore petrochemical plant to meet demand for specialized materials used in the automotive and furniture industries. The upgrade will increase the plant's capacity to produce polyols - industrial chemicals used to make high-quality foams - by more than 100,000 metric tpy to 360,000 tpy. The project was expected to be completed in 2014.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC