Holland Royal Dutch Shell Co. Ltd. and Qatar Petroleum, Qatar petrochemical project cancelled its $6500000000 investment in Al-Karaana, will "significantly alter global PET bottle for supply and demand balance" resin, analysts say.
IHS chemical consulting company director TisonKeel said, Qatar Petroleum and shell are greatly influenced by the oil and natural gas market, the key factor in the decision to cancel the project.
The Al-Karaana project originally planned annual production capacity of 1100000 tons of ethylene and 170000 tons of propylene. The downstream device will include 1500000 tons of ethylene glycol unit, 300000 tons of linear alpha olefins device, and 250000 tons of carbonyl synthetic alcohol factory.
TisonKeel said, with a fixed cost or low cost oxide based operators is greatly influenced by the polymer and the derivative products market changes.
"The price of Asian and European market, also did not fully reflect the impact of the current energy market, will directly reduce the Middle East producers income, only those raw materials floating price enterprises have cost reduction.
"From an operational point of view, the Middle East petrochemical equipment is still in the global scope of the lowest cost producers, but has the habit of $1000 a tonne companies may be difficult to accept $3-400 / ton per ton. Rhododendron aureum
The two companies announced the project in 2011, Qatar Petroleum investment accounted for more than 80%. In January 14th this year, announced the cancellation of the project.
Keel added that, in addition to the Al-Karaana project, it is expected that other projects in the area have also been similar cost pressure.
Qatar has the world's largest natural gas reserves, said the plan prior to 2020 investment of $25000000000 in petrochemical industry.
On early Qatar petrochemical project reports
Holland Royal Dutch Shell Co. Ltd. in 2010 plans to invest $6000000000 in Qatar and Qatar National Oil Co to build a petrochemical project, working on the plan. At present, the Shell Companies is the largest foreign investor in qatar.
Qatar's oil minister Al-attiya said the signing ceremony held in Doha, the 1500000 tons of chemical plant will be completed in 2016 in Qatar RAS Laffan industrial city. Shell Companies spokesman said, plus other petrochemical derivatives, the chemical plant's total refining capacity will exceed 2000000 tons.
Qatar's natural gas reserves with the global third, at present the country also vigorously develop the petrochemical industry to expand its economic growth, this is because the Qatar's economy is mainly dependent on natural gas and oil exports. According to Al-attiya introduction, Qatar plans in 2015 to 2016, the annual refining capacity at least increased to 18000000 tons. Shell Companies CEO Fu Sai said that the new project can well be Shell Petrochemical Technology and experience with Qatar with pumping out of force of ambition together, and create more value.
In 2010 January, Qatar Exxon National Oil Co and Mobil built a refinery signed the first agreement, which is from 2006 in Qatar announced the establishment of liquefied natural gas plant, and Shell Companies, the largest energy projects in qatar. However, in 2010 August, Qatar's oil ministry officials have said, Qatar may choose another partner.
As to whether the project will replace the Exxon Mobil before investment projects, Qatar's oil minister refused to disclose, Exxon Mobil whether be involved in future projects, Al-attiya also did not comment. According to Exxon Mobil signed with Qatar Petroleum Refinery agreement, Exxon Mobil plans to build includes a year refining capacity of 1600000 tons of steam cracking plant, two 650000 tons of polyethylene refinery and a 700000 tons of ethylene glycol refinery, and these projects planned to be completed in 2015.
Qatar Petrochemical Company President Mohammed Mulla said on 2010, Qatar is currently with Exxon Mobil, shell, Chevron company actively negotiating. Two insiders have said the French total company also said that plans to spend $6000000000 in Qatar to build a comprehensive type refinery.
In 2010, the Shell Companies has invested $21000000000 in Qatar, Qatar liquefied natural gas as is the largest exporter in the world, the Shell Companies's business is mainly concentrated in this, its in Qatar liquefied natural gas projects worth $19000000000, in addition, the Shell Companies has 40% in Qatar liquefied natural gas project fourth of the shares.
It is reported that Exxon Mobil is the biggest investor in Qatar liquefied natural gas business, 14 liquefied natural gas plant in Qatar, participated in 12. Exxon Mobil also dabbled in Qatar concentrated refinery material project. In addition, Kang Fei, Total also have investment footprint in Qatar, Qatar 4 natural gas projects have Total shares, at the same time, Total or shareholders of the Qatar Petrochemical Company.