Shell blames cheap oil for cancellation of $6.5bn Qatar petrochemicals plant

Shell and Qatar Petroleum (QP) have decided not to proceed with the construction of the Al Karaana petrochemicals project owing to the recent decline in oil prices. 

A press release from Shell said the project was now "commercially unfeasible". 

The scheme was initiated by QP and Shell in December 2011. The $6.5bn complex was to have been built in Ras Laffan Industrial City, 85km north of Doha, and operated as a joint venture, with QP taking ownership of 80% and Shell 20%. 

The two companies currently operate Pearl GTL, the world’s largest integrated gas-to-liquids plant, which is also located at Ras Laffan. 

Qatar recently put on hold plans to build a massive petrochemicals complex at Ras Laffan.