Exxon cancels Qatar GTL
Posted: 26 February 2007
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In a setback for gas-to-liquids technology, a multi-billion dollar project in Qatar has been scrapped. ExxonMobil will now join partner Qatar Petroleum in a gas project for the domestic market in Qatar.
The GTL plant - a joint venture between ExxonMobil and QP - was planned to come onstream after 2009 producing 154,000 barrels per day.
Rising costs were the main reason for cancellation. When the first agreement was signed in 2004, the project’s estimated cost was $7 billion. Since then costs have risen sharply, threatening its profitability.
Shell’s Pearl GTL project held a ceremony last month to mark the start of construction. Oryx, another GTL joint venture involving Sasol of South Africa and QP, produced its first final product at the end of January. |
