* BP signs 20-year deal with Freeport LNG in Texas
* BP will have capacity to export 4.4 mtpa of LNG
NEW YORK, Feb 11 (Reuters) - BP has signed anagreement to export natural gas overseas from the United States,becoming the latest energy giant seeking to profit from a hugerise in domestic production which has pushed prices far belowglobal levels.
The London-based oil and gas producer has signed a 20 yeardeal with Freeport LNG, a company which is planning to build anexport plant in Texas that will cool U.S. natural gas to aliquid for shipping to needy markets in Europe and Asia,Freeport said in a statement on Monday.
Pending approval from regulators, Freeport hopes to startconstruction on the plant by the end of this year, withcompletion expected four years later, it said.
Under the agreement, BP will be able to use the plant andexport up to 4.4 million tonnes per year of liquefied naturalgas (LNG) per year - the equivalent of the capacity of theplant's second production unit, called a train.
The capacity for the first train has already been sold toJapanese utilities Osaka Gas and Chubu Electric Power.
"With the first two liquefaction trains of the project fullycontracted, we intend to approach the financing marketsimminently so that we can begin construction on the initialtwo-train facility," said Freeport LNG Chief Executive MichaelSmith.
The export plant will be built on the site of Freeport'sexisting import terminal which has sat largely idle over thepast few years as a rise in domestic output evaporated importneeds.
A string of U.S. export plans have emerged over the past twoyears as companies aim to make the most of difference betweenlow U.S. gas prices and high prices in markets such as Asiawhere LNG is at least four times dearer.
However, so far only one project has approval to export LNG- Cheniere Energy's Sabine Pass project in Louisiana - and theU.S. government is taking a cautious approach amid concerns thatshipping gas abroad will push prices higher at home.
BP (BP.)
