After the cancelation of the $6.4 billion Al-Karaana petrochemical project planned as an 80:20 joint venture of Qatar Petroleum and Shell, Industries Qatar, the Gulf's second-largest petrochemicals producer, has said it may expand production to take advantage of surplus ethane feedstock.

The company said it is conducting feasibility studies on new projects in collaboration with Qatar Petroleum, Qatar Chemical Co and Ras Laffan Olefins Cracker Co.

The studies would aim to "develop and expand the number of petrochemical plants with beneficial returns for these companies, and to the petrochemical sector in general," Industries Qatar added.

Along with many others in the region that have seen their margins on subsidised feedstock eroded recently by declining oil prices, the Qatari company has reported a drop in profits. It plans to cut the shareholders' dividend for 2014.