UPDATE 1-Centrica sees earnings in line

* Lower taxes, downstream offset lower gas profits

* Says Venture production progessing well

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LONDON, Nov 12 (Reuters) - British Gas owner Centrica (CNA.L) expects earnings for the year to meet market expectations as lower taxes and a strong downstrean performance offset lower gas production and profitability.

"Assuming normal weather patterns, and based on current forward commodity prices, the group's adjusted earnings are expected to be in line with current consensus," it said in a statement on Thursday. The acquisition of North Sea gas producer Venture, which it bought in August for $2 billion, was progressing well but Centrica said that lower gas prices and production meant profits from its upstream business would be less than half of that recorded in 2008.

The acquisition was part of moves by Centrica to protect its earnings from volatile gas prices.

Analysts currently expect the group to report full-year operating profit of 1.84 billion pounds ($3.05 billion), down from 1.94 billion in 2008, according to Thomson Reuters I/B/E/S.

Its shares, which have gained 10.8 percent over the last three months, closed on Wednesday at 245 pence. (Reporting by Victoria Bryan; Editing by Mike Nesbit) ($1=.6033 Pound)