IHS Chemical Week

World News and Views :: Projects

Spiraling Costs and Gas Supply Concerns Slow GTL Development

11:50 AM MDT | August 2, 2007 | Robert Westervelt

Soaring construction costs as well as concerns about the level of natural gas supply have slowed development of Mideast gas-to-liquids (GTL) projects, analysts say. ExxonMobil and Qatar Petroleum recently dropped plans to build a $7-billion GTL project in favor of developing a liquefied natural gas (LNG) project in the North Field reservoir of Qatar. The companies did not publicly address the reason for cancellation of the projects, but spiraling construction costs and concerns about gas supply were a factor, analysts say. Qatar announced last year that a...

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