South Korea's Honam Petrochemical will not go ahead with a proposed $2.6 billion petrochemical complex in Qatar with state-run Qatar Petroleum, several sources close to Honam said this week.
A source said Wednesday that although Honam had not made an official announcement about the status of the project, "there is no possibility to proceed."
"It's over," he said without providing further details on the reasons behind this change in mind.
Honam Petrochemical and Qatar Petroleum's subsidiary Qatar Intermediate Industries Holdings Company signed a deal in July 2007 to build a $2.6 billion petrochemical complex in Mesaieed, south of Doha, under which the South Korean company would invest $390 million for a 30% stake.
The complex was expected to produce ethylene, propylene and benzene, to be consumed in downstream units including plants with a capacity of 700,000 mt/year of polypropylene, 600,000 mt/year of styrene monomer and 220,000 mt/year of polystyrene.
The complex was originally scheduled to start production in 2011.
But construction did not start largely due to funding troubles following the global financial crisis.
The target for opening was first pushed back to 2012 and then again to 2013.
