We Always Honor Contracts - Greenville LNG Clarifies Breach of Contract Allegations

The President of Greenville LNG, Mr. Eddy Van Den Broeke, has clarified the alleged breach of the gas supply contract with BUA Cement.

DAILY POST learned this during an exclusive chat with Eddy van den Broeke on Thursday in its reaction to a report alleging BUA plans to file a multi-million dollar lawsuit against Greenville for breach of contract.

According to Van Den Broeke, prevailing situations in the country, such as collapsing road infrastructure, flooding of upstream gas infrastructure, lack of access to foreign exchange and others, have forced the company to engage its customers with a contractually authorized price review exercise.

He said that out of 45 customers engaged on the same contractual provision, only BUA Cement disagreed with the contractual process.

He further dismissed the allegation of alleged breach of contract, saying that price revision was permitted under the contract, given the prevailing commercial and financial situation in Nigeria.

Mr. Eddy Van Den Broeke explained that the contractual agreement between his company and BUA left room for a price adjustment based on the agreed contractual terms.

He further urged Nigerians to disregard the allegation that the company has a history of reneging on contractual agreements and being involved in the Panama paper scandal.

He emphasized that he was never involved in the Panama paper scandal because he was doing business with honesty and legal means.

He said Greenville LNG hopes to resolve the disagreement with BUA at a meeting scheduled for December 5, 2022.

He says, "This is not a breach of contract because not only are we continuing to supply gas to BUA's plant in Sokoto, but also because we are discussing in good faith the mutating business and economic conditions which afflict both societies".

"We have a clause in the contract that allows price adjustment according to national situations. In this case, we only activated this clause. We cannot explain how it is possible that social media may have misrepresented if grossly current circumstances and terms 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 term of the contract and go bankrupt." Of course, every Businessman wishes to contain and reduce his costs; in reality, Business works to stay alive”.

“Greenville has been hit hard with damaged road infrastructure after the unprecedented rainy season and flooding: this is a well known fact to all Nigerians who are similarly affected. increase in trucking turnaround time from South to North. For a supply that takes 5 days we now take 10 days. This means that to provide the same service, we have to deploy twice the number of trucks on the roads. Also , the unavailability of the primary financial market in foreign currencies for the import of spare parts for the maintenance of trucks and equipment necessary for the production of LNG, for the import of consumables not produced in Nigeria and other raw materials sold in foreign currencies are the determining factors leading to the increase in gas supply costs.”

“It is completely illogical for foreign investors to get bad press and be thrown in the mud, after the government policy of attracting foreign capital to Nigeria; how do you want more foreign investors if someone could publish anything in the newspapers? Freedom of speech is sacred, but laws must be obeyed."

"I cannot intervene myself; the government is responsible for implementing policy. I cannot be involved in the decision of the President or the Central Bank of Nigeria regarding foreign exchange. Of course , we have a clause in the contract that says we can adjust prices in such circumstances. It is up to the private partners in the Enterprise to keep them going. If you don't have access to US dollars, what do you do? our spare parts here, do our banking in Europe in Naira: but no, you can't! So if you don't understand this in business, something is wrong. That means you want to enjoy your support exclusively It's happening in Russia with the oligarchs, and you see the consequences: it shouldn't happen the same way in Nigeria!"

"Also, I have to tell you that 100% of our other customers accepted the price adjustment, except for BUA".

"Every industry has this problem, it doesn't matter if the industry is in the energy sector or not, it's the same thing. What I read in the press about what BUA wants us to do we do until the end of the contract in 2026 is to continue supplying at a fixed price: this means that very soon we will supply Sokoto for free Good press for BUA, but according to my principles in business, it does not work like this."

"BUA should embrace us, not criticize us. In the past 10 months, we have received 2...