Shell and Qatar Petroleum will not proceed with a $6.4 billion petrochemical complex they planned to build in the Ras Laffan Industrial City north of Doha, Qatar. The companies said recent EPC bids for the Al Karaana project revealed high capital costs, rendering it economically unfeasible in the current oil price environment. The Al Karaana project — initiated in 2011 — was to be an 80/20 joint venture between Qatar Petroleum and Shell, respectively.
Reuters notes that Al Karaana is the second major project in the region to be shelved since oil prices began to drop. Saudi Aramco earlier this month put its plans for a $2 billion clean fuels plant in Ras Tanura on hold.
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