By JING YANG
BP dropped plans to invest in a refinery in China and
dismantled a team assigned to the project
late last month, said the
International Energy Agency.
BP had considered investing in the 200,000 bpd Qinzhou plant
operated by PetroChina, according to the IEA, an energy
adviser to developed nations. The refinery
in the southern province
of Guangxi started operations in 2010 and is currently being
upgraded to handle a wider range of feedstock
, it said in its monthly
Oil Market Report.
David Nicholas, a BP spokesman in London, declined to comment
on the report.
Chinese and international oil companies are reconsidering
-investment plans as the
Asian nations oil consumption expanded at the slowest
pace in six years in 2013, according to the IEA. About 4.3
million bpd of primary distillation
scheduled for completion by 2018, by far
exceeding demand project
ions, it said.
Growing concerns over the risks of oversupply in the
Chinese fuels market have led at least four project
s to be canceled in recent
months, according to the report.
PetroChinas plans to build a refinery
complex in east
China with Royal Dutch Shell and Qatar Petroleum stalled last
year amid land issues, said the Paris-based agency.
Chinas biggest oil producer also delayed two new
refineries originally scheduled to start operations this
year, data from CNPC, the parent company, showed on Dec. 12.
The Kunming plant, with a crude-processing capacity of 10
million tpy, will begin operations in 2016 while the Jieyang
facility, a joint venture with Venezuelan state oil company
Petroleos de Venezuela (PdVSA), has been postponed to 2017.