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.Â
A press release from Shell said the project was now "commercially unfeasible".Â
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%.Â
The two companies currently operate Pearl GTL, the world’s largest integrated gas-to-liquids plant, which is also located at Ras Laffan.Â
Qatar recently put on hold plans to build a massive petrochemicals complex at Ras Laffan.