PARIS, Sept 20 (Reuters) - Natural gas production has

begun earlier than planned at Argentina's Fenix offshore field,

French oil major TotalEnergies said on Friday.

The $700 million project, initially scheduled to begin

operating in November, has a production capacity of 10 million

cubic meters of natural gas per day, representing 8% of

Argentina's total production.

The gas from the Fenix field off its southern coast is

destined for domestic consumption, as Argentina seeks to reduce

imports, deregulate local prices, promote energy investment and

turn itself into a liquefied natural gas exporter.

TotalEnergies operates a quarter of Argentina's production,

the most of any private company, with operations in the Vaca

Muerta formation, the world's second-largest unconventional gas

reserve, as well as other projects in Tierra del Fuego.

It has a 37.5% operating interest in Fenix, alongside BP's

Pan American Sur with 25% and London-listed Harbour

Energy ( PMOIF ), which purchased Wintershall Dea's upstream

portfolio in December, which also has 37.5%.