Gasunie Calls on Nitrogen Plant Contractors to Ensure Neat Completion

Source: 1/8/2023, Location: Europe

Gasunie was informed this weekend by Air Products that Air Products has terminated the contract with its subcontractor Ballast Nedam Industriebouw. Gasunie regrets the course of events and calls on the parties to ensure a proper completion. Gasunie remains fully committed to the prompt delivery of a properly functioning nitrogen installation. It will continue to ensure that Air Products comes up with a suitable new plan in the short term to complete the final work on site properly.

The nitrogen plant to be built in Zuidbroek is almost complete (97%). Air Products has promised Gasunie to come up with a suitable plan by mid-January to work with new and existing contractors and subcontractors to complete the final work.

EPC contract
Gasunie subcontracted the construction of the nitrogen plant in December 2018 under a so-called EPC (Engineering, Procurement and Construction) contract to Air Products, a major international player specializing in such projects. The EPC contract includes all work to achieve a working plant. Designing the plant, procuring all materials and contracting other necessary contractors. For the construction of the plant, Air Products has engaged Ballast Nedam.

No consequences for gas production
The newly created situation has no consequences for gas production from the Groningen field. This can be absorbed partly through the import of LNG and lower gas consumption.

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