LONDON (Reuters) - BP BP.L does not expect supply from additional biofuel capacity in Brazil - where it is combining its unit with U.S. grain trader Bunge's BG.N - to replace diesel and gasoline demand, BP's head of Alternative Energy, Dev Sanyal, told Reuters.

Through the deal BP will increase its biofuel production to 22 million tonnes from 10 million tonnes a year, firmly focusing on Brazil as its biofuels production and consumption hub.

To grow, BP expects to squeeze more out of the existing assets of the combined entity, rather than buy more land to plant sugarcane, Sanyal said.

A BP spokesman said it was too early to talk about possible job cuts.