UPDATE 3-Kuwait wants Shell out of China refinery plan-KUNA

(Adds source on BP)

KUWAIT, Sept 25 (Reuters) - Kuwait wants to drop Royal Dutch Shell (RDSa.L) as a partner and is instead considering BP (BP.L) in a project to build a $5 billion oil refinery in Guangdong in China, Kuwait's state news agency KUNA reported on Tuesday.

Shell had hoped to gain a foothold in the domestic fuel market of China, the world's second-largest energy consumer, through the Guangdong plant, after an attempt to take a share in another refining project failed last year.

The refinery would be one of the largest joint venture investments in China, similar in size to the $5 billion refinery to be built by Exxon Mobil (XOM.N) and Saudi Aramco in Fujian.

State-owned Kuwait Petroleum Corp. (KPC) and China's largest refinery Sinopec received preliminary Chinese government approval for the Guangdong plant last year.

In August, Sinopec said Shell and U.S. Dow Chemical Co (DOW.N) were also in talks to participate.

Shell and BP spokesmen in London and Dow and Sinopec spokesmen officials in China all declined immediate comment on the KUNA report.

There were several reasons KPC no longer wanted Shell involved, including objections from China's National Development and Reform Commission, KUNA reported, citing Chinese sources.

KPC was in talks on the project with BP, which had previously expressed interest, KUNA said.