June 20 (Reuters) - BP has agreed to buy grain

trader Bunge's 50% stake in Brazilian sugar and ethanol

joint venture BP Bunge Bioenergia in a $1.4 billion deal, the

companies said on Thursday.

BP said that following the completion of the deal,

expected by end-2024, it would have the capacity to produce

around 50,000 barrels a day of ethanol equivalent from sugarcane

through Bioenergia.

BP is also scaling back plans for development of new

biofuels projects, the British energy giant said. The company is

pausing two such projects and assessing three.

"This business is not core to Bunge's long-term strategy

and this transaction will allow us to focus and invest in our

core businesses," said Bunge CEO Greg Heckman.