A multi-billion dollar petrochemical plant project more than three years in the making is being aborted due to the current economic climate in the energy sector. According to Fuel Fix, the Royal Dutch Shell project dubbed “Al Karaana” was a joint venture between Shell, which had a 20 percent stake in the project, and state-owned Qatar Petroleum, which had an 80 percent stake in the project.
In a statement released Monday, Shell said that it decided not to move forward with Al Karaana after receiving bids form engineering and construction firms that “showed high capital costs, rendering it commercially unfeasible, particularly in the current economic climate prevailing in the energy industry.” Neither company commented on how much the development would have cost, but in 2011 Qatari energy minister Mohammed al-Sada estimated the cost to be around $6.4 billion.
The project would have used natural gas feedstocks from projects in Qatar. In March 2014, the companies completed the front-end engineering design work and the project was waiting on a final investment decision since then.