Gasunie wants 'neat completion' of nitrogen plant in Groningen after contract termination

The Dutch gas company Gasunie wants the parties involved in the construction of a new nitrogen plant in Zuidbroek, Groningen, to bring the project to a "neat completion". In fact, Gasunie said it was informed this weekend by Air Products that the contract with subcontractor Ballast Nedam Industriebouw was terminated. The installation, however, is already almost complete.

Gasunie, as the client of the project, regretted the course of events. However, the reasons for the termination of the contract were not disclosed. In the past, staff shortages and a conflict between contractors have already led to several delays in completion.

The plant was designed to make imported gas suitable for Dutch central heating boilers and stoves by adding nitrogen. Initially, the nitrogen plant was supposed to be ready at the beginning of last year, but was delayed several times.

"Gasunie continues to make every effort to ensure the early delivery of a properly functioning nitrogen plant. It continues to ensure that Air Products submits a suitable new plan in the short term to properly complete the final work on site," the company said in a statement.

The nitrogen plant in Zuidbroek is reportedly 97 percent complete. The project was subcontracted by Gasunie to Air Products in 2018. The U.S. company then contracted Ballast Nedam for the construction. According to Gasunie, Air Products has agreed to have a plan in place by mid-January to work with new and existing contractors and subcontractors to complete the work.

The Dutch gas company claimed the situation has no impact on gas production from the Groningen field. This can be partly offset by imports of liquefied natural gas (lng) and lower gas consumption, according to the company.