Economics

Qatar, Shell Scrap $6.5 Billion Project After Oil’s Drop

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By Mohammed Aly Sergie and Firat Kayakiran

January 14, 2015 at 12:41 PM UTC

Updated on

January 15, 2015 at 11:58 AM UTC

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Qatar Petroleum and Royal Dutch Shell Plc ended plans to build a $6.5 billion petrochemical plant in the emirate, one of the biggest casualties of slumping oil prices so far as producers scrap projects to conserve cash.

The two companies, which formed a partnership for the al-Karaana project in 2011, said yesterday that they decided not to proceed with building the plant because it was “commercially unfeasible” in the current energy market.