Citi loses four Houston LNG traders-source

* Citi intends to replace traders

* Citi still has LNG trading capabilities

NEW YORK May 3 (Reuters) - Four traders have left Citi Group's (C.N) liquefied natural gas trading team in Houston, a source close to the matter told Reuters on Monday.

Citi, which still has LNG trading capabilities, intends to replace the four traders, the source said.

Sources could not name the traders, nor confirm if they had moved to another company.

Citi entered the LNG trading market last year, buying its first cargo from Port Fortin LNG Exports in Trinidad. Since then it has aggressively sought spot buying opportunities, with an office also set up in Singapore.

The total commodities staff at Citi is around 250 and the bank has said it intends to increase the team to about 340 overall.

Smaller players like banks have recently been making inroads into the growing LNG market which was previously run by a few large incumbents. Increased production and more liquidity has led to opportunities for new entrants into the spot market.

JP Morgan (JPM.N) recently signed a deal giving it access to the U.S. Sabine Pass import terminal in Louisiana, while Morgan Stanley (MS.N) already has a firm foothold in the market. Barclays Capital (BARC.L) markets LNG shipped to the U.S. Northeast Gateway terminal offshore Boston, giving it insight into the workings of the market. (Reporting by Edward McAllister; Editing by Marguerita Choy)