The company is withdrawing its Beijing-based team, appointed to study the feasibility of acquiring a stake in 200,000 barrels-per-day plant in Qinzhou, which is operated by PetroChina, according to sources familiar with the matter.
After working for two years, the team is now being reassigned.
An industry executive was quoted by Reuters as saying, "There is growing concern of an over-supplied China market, so BP is taking its precautions."
PetroChina’s plant commenced operations in 2010 and the company is currently upgrading its capabilities to handle a wide range of crude varieties.
Earlier this month, PetroChina halted starting up two new refineries – a 400,000-bpd joint venture with Venezuela and a 200,000-bpd plant in potential alliance with Saudi Aramco, and delayed expansion of another refinery due to fears of over capacity as fuel demand growth slows.
