Gas Company, Greenville LNG Risks Another Big Money Lawsuit
Greenville, the pioneer Liquefied Natural Gas (LNG) production and distribution company in Nigeria risks yet another big money lawsuit.
It is, as a matter of fact, a FiFTY BILLION NAIRA (N50bn) lawsuit against the Nigerian subsidiary of International Engineering & Construction (IEC), a Luxembourg-based construction company owned by Eddy Van Den Broeke, a Belgian cement magnate.
The lawsuit, expected to rock Mr. Eddy Van Den Broeke and his enterprise any moment from now, is being perfected by BUA group, a report by Politics Nigeria indicated.
The sin of Mr. Broeke and his company is reneging on a contractual agreement.
BUA is said to be accusing Greenville LNG of a breach of “contract and reneging on its obligation to supply gas to its businesses in the far north”.
Also, there is an allegation of arbitrary increase in prices despite the contractually agreed oil-indexed pricing for any price changes.
And sadly for Greenville, the development is coming two years after it was slammed with a $9m claim for breaching contracts by a US Court.
The suit that got Greenville axed in the US, according to a report by Politics Nigeria, was instituted by Baker Hughes Energy Services LLC, formerly known as GE Oil & Gas (GEOG), over failure to meet contractual agreements.
Explaining what transpired Politics Nigeria reports “In 2014, IEC through Greenville LNG entered into an agreement with Baker Hughes Energy Services LLC, formerly known as GE Oil & Gas (GEOG), for the purchase and installation of two small-scale liquified natural gas plants in Rumuji, Rivers State, Nigeria.
GEOG agreed to supply IEC with two small-scale liquified natural gas production plants — the first by June 24, 2015, and the second by September 24, 2015— for use at the Rumuji Site.
In exchange, IEC agreed to pay GEOG $95 million. Both parties also agreed on a payment schedule, which would require IEC to pay various percentages of the $95 million at specific milestones.
It was stated that the agreement would be governed by and construed in accordance with the laws of the state of New York.
Unfortunately, GEOG failed to deliver the gas plants by their contractual delivery deadlines and this stalled installation, commissioning, and start-up of the Plants.”
Eventually, In 2020, the American Tribunal gave its verdict and awarded the sum of $9.5m in favour of GEOG against IEC and Greenville for contract breach.
Those who are familiar with BUA’s doggedness when it comes to issues that have to do with its rights maintain a similar fate awaits Greenville LNG and its promoter.
Court Document
