DOHA, Jan 15 (Reuters) - Industries Qatar, the Gulf'ssecond-largest petrochemicals firm, is considering expandingproduction to take advantage of excess feedstock left by aproject's cancellation, the company said on Thursday.
On Wednesday, state firm Qatar Petroleum andShell said they had decided not to proceed with the$6.4 billion Al-Karaana petrochemical project in the Gulf state,deeming it "commercially unfeasible" given weaker oil prices.
Industries Qatar said in a statement that it was conductingfeasibility studies to "take advantage of the ethane feedstockavailable following the decision not to proceed with theproposed Al-Karaana Petrochemical Project".
The company said it would conduct the studies incollaboration with Qatar Petroleum, Qatar Chemical Co and RasLaffan Olefins Cracker Co.
The studies would aim to "develop and expand the number ofpetrochemical plants with beneficial returns for thesecompanies, and to the petrochemical sector in general",Industries Qatar said.
The company's board recommended a 2014 dividend of 7 riyalsper share on Sunday, down from the 11 riyals paid in 2013 andbelow analysts' average forecast of 11.13 riyals.
The divided cut reflected difficult operating conditions forpetrochemicals firms in the Gulf. Plunging crude oil prices havedragged down product prices and eroded the margins which Gulfproducers traditionally generated from subsidised feedstock. (Reporting by Amena Bakr; Editing by Sam Wilkin)
