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Nitrogen plant builder Groningen terminates contract with subcontractor | inland

The company Air Products, responsible for the construction of the nitrogen plant in Zuidbroek, terminated the contract with the subcontractor Ballast Nedam on Saturday with immediate effect. Ballast Nedam would not have respected the agreements.

It is not clear which agreements would have been violated. However, staff shortages and a conflict between contractors caused delivery delays several times. Gasunie is the client of the project.

The factory near Zuidbroek is to make the imported gas suitable for Dutch central heating boilers and stoves by adding nitrogen. The installation was supposed to be completed early last year, but has been postponed several times.

Gasunie holds the pulse of the wrist. “We continue to ensure that Air Products develops an appropriate new short-term plan to successfully complete the final on-site work,” he said in a statement.

The nitrogen plant in Zuidbroek is 97% complete. The project was outsourced by Gasunie to Air Products in 2018. The American company subsequently hired Ballast Nedam as a subcontractor.

According to Gasunie, Air Products has committed to come up with a plan in mid-January to complete the final work with new and existing contractors and subcontractors.

Gasunie says the situation has no consequences for gas extraction from the Groningen field. This may be partially offset by the import of liquefied natural gas (LNG) and lower gas consumption, the company reports.

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