BP withdraws from Chinese project

BP announced yesterday that it has withdrawn from a project to build a 2,485-mile gas pipeline from northern China to Shanghai.

BP was one of four foreign companies invited to participate in the construction of the pipeline, the biggest such project in China.

BP estimated its cost at £10bn but the company said it could not structure a unique bid for the work.

Bids for the work are yet to be submitted by Exxon-Mobil Corp, Royal Dutch/Shell Group and Russia’s Gazprom.

BP has already invested £2.4bn in Chinese energy and chemicals industries.

It owns 2.2% of PetroChina, the state-owned gas and oil concern, which is organising the construction of the pipeline.