Greenville LNG Clears Air On Contract Breach Allegation
Kayode Tokede
The Management of Greenville LNG has cleared the air on the allegation of breaching the gas supply contract with BUA cement Plc.
The Chairman of Greenville LNG, Mr Ed dy Van Den Broeke, reacting to the allegation that BUA plans to file a multi-million dollar lawsuit against Greenville over a contract breach, said the prevailing situations in the Country forced the Company to engage its customers with a Contractually permitted price review exercise.
He stated that out of 45 customers engaged on the same Contractual provision, only BUA cement disagreed with the contractual process.
He further dismissed the claim of alleged contract breach, saying price review is permissible under the Contract, given the prevailing business and financial circumstances in Nigeria.
He explained that the contractual agreement between his company and BUA gave room for a price adjustment based on the contractual provisions agreed.
He further urged Nigerians to disregard the allegation that the company has a history of reneging on contractual agreements and being involved in Panama paper scandal.
He emphasised that he was never involved in the Panama paper scandal because he does business within lawful means and honesty. He said Greenville LNG hopes to settle the disagreement with BUA in a meeting slated for December 5th, 2022.
According to him, “It is not a breach of contract because not only are we continuing the gas supply to BUA plant in Sokoto but also because we are discussing in good faith on the mutated business and economic conditions that afflict both Companies”.
“We have a clause in the contract which gives room for a price adjustment on account of the nation’s prevailing situations. In this case, we only activated that clause. We cannot explain how it is possible that social media misrepresented so grossly the present circumstances and the conditions of our contract, which were not reflected at all. Without a contractually permitted price adjustment, we would then supply BUA at unrealistic prices for the remaining duration of the Contract and go bankrupt.”
