Exxon, Qatar scrap GTL project

Exxon Mobil Corp. and Qatar Petroleum said Feb. 20 they would scrap a gas-to-liquids project in favor of developing another project to provide natural gas to the domestic Qatari market.

The domestic project, Barzan, will supply domestic gas to the booming Qatari economy, according to ExxonMobil’s web site. Qatar has seen unprecedented industrial growth amid a natural gas boom.

The move comes amid soaring costs for major capital projects like converting gas to petroleum liquids. The liquids are easier to export by tanker ship than the gas.

Irving-based ExxonMobil and Qatar signed an agreement for the GTL project in July 2004. The deal was due to expire later this year, said ExxonMobil spokeswoman Jeanne Miller.

“This is a decision we made that’s very consistent with our investment approach,” Miller said.

“The Barzan project is a very important strategic project for Qatar,” said Qatar Energy Minister H.E. Abdullah bin Hamad Al-Attiyah.

—The Associated Press