An engineering and project management firm based in the British Virgin Islands, Process and Industrial Developments Limited has approached the United States District Court of Columbia, seeking to enforce an eight point nine billion dollars arbitral award against the Federal Government.
According to the papers filed by the British firm before the US court, the arbitral award against the Federal Government followed a failed power project for which the Federal Government signed a twenty year agreement with the foreign firm in 2010.
The British firm explained that in 2010 it signed a contract with the Ministry of Petroleum Resources to “help Nigeria harness its abundant natural gas reserves to solve the growing electricity crisis” in the country.
It said it was agreed that the British firm would build necessary facilities to help refine Nigeria’s associated natural gas or wet gas into non-associated natural gas or lean, which would then be used to power the national electric grid in the country.
The British firm said with the contract, it had hoped to make a substantial profit from the sale of millions of metric tons of NGLs over the 20-year term.
It explained that though NGLs which include ethane, propane and butane– render wet gas unsuitable for electricity generation, they could be marketed independently and profitably.
P&ID said the electricity project, however, hit the rock as Nigeria not only failed to supply it with the agreed daily quantity of wet gas but also failed to complete the construction of necessary
infrastructure to transport the wet gas to P&ID’s operation site in Calabar.
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