HOUSTON/CARACAS, July 22 (Reuters) - British oil and gas

producer BP, Venezuela's state oil company PDVSA and

Trinidad and Tobago's National Gas Company are speeding

negotiations for a Venezuelan license to develop natural gas

deposits in the Caribbean Sea, four people familiar with the

matter said.

The companies last year resumed negotiations for developing

the Cocuina-Manakin gas field on the maritime border between

Trinidad and Venezuela, which contains about 1 trillion cubic

feet of natural gas.

The talks have progressed since the U.S. in May granted an

authorization for the project, providing an exemption to energy

sanctions on Venezuela. The parties now aim to sign the

Venezuelan license needed to develop that side of the field

before a presidential election in the South American country on

July 28, the sources said.

A license signing ceremony Venezuelan authorities had

planned for last week was postponed as there were outstanding

agreements to reach. Trinidad's energy minister Stuart Young

recently traveled to Caracas to take part in some meetings, the

people added.

BP, which declined to comment on the issue, had previously

said it was actively pursuing development of the field. PDVSA,

NGC and Trinidad's energy minister did not immediately reply to

requests for comment.

BP wants the gas primarily to supply Trinidad's flagship

Atlantic LNG project. A smaller portion of the output would go

to NGC for use in Trinidad's petrochemical sector, two of the

people said.

Trinidad is Latin America's largest LNG producer and the

world's second largest exporter of methanol and ammonia, but its

industries have suffered in the last five years from a shortage

of natural gas. Atlantic LNG has capacity to produce some 15

million metric tons per annum of the superchilled gas.

The U.S. authorization to Cocuina-Manakin is the second by

Washington for energy projects between Trinidad and Venezuela

that it sees as key to securing gas for international markets.

A previous license was granted early last year by the

U.S. Treasury Department to Shell for developing the

Dragon gas field in Venezuela. The project, whose infrastructure

was partially built by Venezuela but remains idled, could begin

gas output late next year.

Gas from both projects is expected to be converted into LNG

in Trinidad for export to neighboring Caribbean nations,

Venezuelan and Trinidadian officials have said.