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Mon 12 Jan 2009 07:13 AM

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Qatar industrial city set to revise projects

Ras Laffan mega project chiefs set to re-evaluate plans amid current slump in oil price - official.

Qatar's Ras Laffan Industrial City may revise projects because of a drop in oil prices and cheaper building materials, its director has announced."The senior management is looking more at revising the projects in terms of the drop in oil prices, and re-evaluating from an engineering and feasibility perspective," Khalid Khalifa al-Thani said on the sidelines of an energy conference in Dubai.

"In the current situation we are expecting the cost of building materials will drop down ... this will have a major effect on projects," he said.

Separately, Qatari Oil Minister Abdullah al-Attiyah said prices of building materials were expected to fall by 30 to 40 percent in the next three months, state news agency QNA said.

Oil prices have fallen more than $100 from a record peak of above $147 barrel last July as the global economic downturn hits demand for fuel. Steel prices and demand have also fallen sharply in the face of a global downturn.

Qatar has the world's third-largest gas reserves and is the top exporter of liquefied natural gas (LNG).

Ras Laffan Industrial City, which stretches over more than 100 sq km (39 sq miles) is one of the main development projects in the small Gulf Arab state, which has announced plans to invest $30 billion in its power and water sector. (Reuters)

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