Nigeria oil state in $12 bln LNG deal with Centrica

LAGOS May 27 (Reuters) - Nigeria's oil-producing state of Akwa Ibom has signed a $12 billion deal with British gas and power firm Centrica Plc (CNA.L) to build a new liquefied natural gas (LNG) plant, a top government official said.

Governor Godswill Akpabio said the plant will be built on Tom Island in Mbo district of southeastern Akwa Ibom state, Nigeria's official news agency reported on Tuesday.

Akpabio, who spoke with reporters in the state capital Uyo late on Monday, did not give details of the deal or the planned capacity of the proposed LNG plant.

"We are in partnership with an international organisation called Centrica ... to make our LNG dream come true," Akpabio said, adding that the project was a "wonderful investment".

Centrica said in November that it had signed a deal to look at developing a Nigerian LNG venture alongside Norway's StatoilHydro (STL.OL).

Centrica said then the memorandum of understanding would see the firm and StatoilHydro each taking a 37.5 percent interest in the consortium, with infrastructure company Consolidated Contractors holding 25 percent.

It said the feasibility study was expected to cost about $10 million and would include analysis of potential feed gas and LNG plant locations.

Nigeria has the world's seventh-largest gas reserves at 180 trillion cubic feet, but has been unable to develop its gas industry to anywhere near full potential because of a lack of funds and regulation.

At present, Nigeria exports about 3 billion cubic feet (bcf) per day, flares about 2.5 bcf due to lack of facilities to use it, and supplies only 0.5 bcf to the domestic power sector.

The government approved a blueprint in February to develop the sector by building new infrastructure that would allow gas to be used for power generation and industry rather than being burnt off.

Besides the Centrica deal, Western multinationals have proposed building two new liquefied natural gas export plants in Nigeria, each worth at least $10 billion investment, but neither project has been given the final go-ahead.

(Reporting by Tume Ahemba; Editing by Nick Tattersall)