Shell's plans to expand in Qatar take a back seat in view of an ethane shortage

15-Dec-09

Qatar recently extended a moratorium on development of all types of new gas-fed industrial projects from 2012 to 2014 to further scrutinize reservoir behaviour of its North Field gas reserves. Shell would like to build two crackers and two OMEGA process plants on the same scale as that of Singapore. These plans have taken a back seat as at the moment there is simply not enough ethane. Ethane shortage is slowing Shell Chemicals' ambitions for building at least one cracker complex in Qatar, as per Ben van Beurden in ICIS. Shell, ExxonMobil and Honam Petrochemical are three foreign companies known to be pursuing cracker projects in Qatar as joint ventures with Qatar Petroleum. Shell's project that has been delayed beyond 2015, as well as ExxonMobil's project will run 100% on gas, while Homan's proposed plant would be mixed liquids and gas feed.