*

Francine could hit Louisiana with life-threatening winds

and

storm surge

*

Energy companies shut-in 24% of Gulf oil production,

evacuate

staff

*

Ports from Texas to Louisiana impose restrictions, prepare

for

storm

*

Storm poised to become major test for US LNG export plants

(Adds upgrade to hurricane, paragraphs 1 and 3)

By Gary McWilliams and Marianna Parraga

HOUSTON, Sept 10 (Reuters) - Francine strengthened into

a hurricane on Tuesday night, the U.S. National Hurricane Center

said, as it prompted Louisiana residents to flee inland and oil

and gas companies to shut in Gulf of Mexico production.

Francine was developing more slowly than earlier forecast

but could still wallop the Louisiana coast on Wednesday with

life-threatening winds, drenching rains and an up to 10-foot

(3-meter) storm surge.

Maximum sustained winds reached 75 miles per hour (120 kph)

on Tuesday night as the storm became a Category 1 hurricane on

the five-step Saffir-Simpson scale, the hurricane center said.

The storm was moving off the southern Texas coast and

expected to make landfall on Wednesday near Thibodaux in

Louisiana. Its path promises a major test for liquefied natural

gas (LNG) export plants recently built in the region.

Energy companies shut-in 412,070 barrels per day of oil

production, about 24% of the U.S. Gulf of Mexico production, and

evacuated staff from 130 production platforms, U.S. offshore

regulator Bureau of Safety and Environmental Enforcement said on

Tuesday.

About 494 million cubic feet per day, or 26% of Gulf natural

gas production, was offline, according to reports submitted to

the offshore regulator.

The region is home to about 15% of U.S. oil production and

2% of natural gas output.

U.S. natural gas prices rose about 3% on worries

about the production shut-ins and potential impact on LNG

plants. Global oil demand concerns overshadowed the storm and

U.S. crude futures fell more than 4%.

Oil refiners and fuel distributors along the Louisiana coast

were preparing to weather the storm. Citgo Petroleum said its

Lake Charles oil refinery was implementing its hurricane plan.

The port of Brownsville near the border with Mexico and

other smaller terminals in Texas remained closed on Tuesday,

while other ports, including Houston, Galveston, Corpus Christi,

Texas City and Freeport, were working with restrictions.

Between Texas and Louisiana, ports from Beaumont, to

Plaquemines imposed restrictions to vessel traffic, the Coast

Guard said.

In New Orleans, port officials were preparing to close its

terminal and railroad operations, with service to resume on

Thursday following damage assessments. Ports in Houma, Morgan

City and the Louisiana Offshore Oil Port were closed to

navigation, according to the U.S. Coast Guard.

Ports in Mississippi and Alabama, including Pascagoula also

began storm preparations, but remained open on Tuesday. After

landfall, the center of Francine is expected to move into

Mississippi on Wednesday night or Thursday.

Oil producers Exxon Mobil ( XOM ), Shell and

Chevron ( CVX ) removed offshore staff and curtailed production.

Pipeline operator Enbridge ( ENB ) also pulled employees from

several U.S. Gulf of Mexico platforms.

Louisiana is home to three of the country's seven big

operating LNG export plants. New plants - Sempra's ( SRE )

Cameron LNG, Venture Global LNG's Calcasieu Pass LNG and

Tellurian's Driftwood LNG development - are along the

path of Francine.

Natural gas flowing to the Cameron LNG export plant dropped

on Tuesday to 1.3 billion cubic feet per day (bcfd) from about

2.2 bcfd on Monday, LSEG data showed. Sempra ( SRE ) did not reply to a

request for comment.

Freeport LNG, which operates the nation's second-largest

export plant for the super-chilled gas, said it had begun storm

preparations at its Texas plant without providing details.