* BP blames competition from mega-refineries in Asia
* Says considering converting refinery in Brisbane into animport terminal
* Australian refineries have mostly booked losses in recentyears
* BP's west coast Kwinana refinery part of growth strategy (Adds details, company, analyst quotes)
SYDNEY, April 2 (Reuters) - BP is ceasing productionat its Bulwer Island refinery in Brisbane, Australia by mid2015, blaming competition from new mega-refineries in Asia thatare cheaper to operate.
Australia's refineries, owned by BP, Royal Dutch Shell, ExxonMobil and Caltex, have mostlybooked losses over several years as a higher local dollar,tighter fuel quality standards and the introduction ofsuper-sized refineries in Asia have made them uncompetitive.
Rather than spend money on upgrading plants, BP and othermajors have been looking to sell them or turn them into fuelimport depots.
"Market reality global refining capacity is shifting toservice the energy growth areas of the globe and is doing sowith very large port-based refineries," Andy Holmes, presidentof BP Australasia, said in a media conference.
BP said it was considering converting the Bulwer Islandrefinery, which dates back to the 1960s and has a capacity toproduce 102,000 barrels of fuel per day, into a multi-productimport terminal.
"We have concluded that the best option for strengtheningBP's long-term supply position in the east coast retail andcommercial fuels markets is to purchase product from otherrefineries," Holmes said.
The shift away from refining in Australia follows reductionsin refining in countries including Germany, France and Britain,where growth in energy consumption is slowing.
"If you look at the players in Australia, there are BP,Chevron and Shell and they do have refineries elsewherein Asia outside of Australia," said Suresh Sivanandam,short-term downstream oil analyst at Wood Mackenzie
"For example, Chevron has refineries in South Korea andThailand and Shell has Malaysia, Singapore and also Japan. Theycan easily meet Australia's deficit from these markets,"Sivanandam said.
BP employs 380 staff and 300 contractors at Bulwer. Therefinery has a capacity of around 102,000 barrels per day andproduces petrol, diesel, kerosene, aviation fuel, heating oiland LPG.
Asian mega refineries generally produce petrol as a byproduct, given the primary demand for transport fuel in theregion is diesel.
Shell earlier this year said it was exiting refining andmarketing in Australia, selling the business for around $2.6billion to global oil trader Vitol SA. Shell hasalready closed its Sydney refinery, while Caltex is due toconvert its Sydney refinery to an import terminal this year.
BP's 146,000 barrel-per-day Kwinana refinery on the westerncoast remained a "big part" of the company's growth strategy inthe Australian states of Western Australia, South Australia andTasmania, a BP spokesman said. (Reporting by James Regan, Jane Wardell in Sydney and FlorenceTan in Singapore; Editing by Ed Davies)