Process and Industrial Developments Limited (P&ID) is an engineering and project management firm founded and led by Michael Quinn and Brendan Cahill.
They planned a project that would deliver much-needed power generation to millions of Nigerians, and create profitable by-products for sale of the shores of the country. Under a supposed agreement with country, P&ID would have built a ultra-modern gas processing plant to refine “wet gas” (natural gas) into “lean gas” for Nigeria at no cost to power its national electric grid. While the lucrative natural gas liquid by-products (propane, ethane, butane) of this processing would be sold by P&ID on the international market, with expected profits in the billions of dollars, and serves as their source of revenue.
In 2010, P&ID was said to have entered a 20-year agreement with the federal government of Nigeria to execute this project.
Under the said agreement, the Nigerian government was to make infrastructural contribution (ensure all necessary pipelines and related infrastructure were installed) and that arrangements were made with agencies and third parties to deliver gas for P&ID to process. However, the Nigerian government was said to have failed to meet its commitments, causing the project to flounder. This meant Nigeria had lose the opportunity of a new power supply, and P&ID had lose 20 years’ worth of profits.
The company was said to have made series attempts on multiple occasions to find a solution, and bring the company to the table, all to no avail.
In 2012, arbitration commenced before a tribunal in London. Although during the arbitration Nigeria was said to have claimed to be interested in reaching an amicable settlement with P&ID, the country never made a serious offer and was crystal clear clear the country was only delaying the proceedings with the settlement discussion motion.
In July 2015, the tribunal in London unanimously concluded that Nigeria was liable for the government having repudiated the agreement with P&ID.
In January 2017, the tribunal ordered the Nigerian government to pay P&ID $6.6 billion in damages, plus interest that is accruing at a rate of over $1.2 million per day and now stands at $2.8 billion.
However, the administration refuses to pay, the company has brought court proceedings, in both the U.K. and the U.S., to enforce the award. If P&ID is successful, they can enforce the award against Nigeria by seizing its commercial assets.
In addition to the significance of the debt owed, the project might be a massive loss opportunity for the country. The P&ID project could have generated an additional 2,000 megawatts of power for the national grid, and might have been a transformative project for the country and it’s millions citizens. Nigeria lacks sufficient electricity to power a modern economy and support its rapidly expanding population. In 2018, the World Bank estimates that only 56.5% of the country have access to reliable supply of electricity, which was far behind compare to other Africans like Algeria 100%, cape Verde 93.6%, South Africa 91.2%, Ghana 82.4%, and a host of others.
“P&ID was eager to deliver this promising project in the hope of bringing electricity to millions and helping Nigeria reach its full potential. Unfortunately, the government did not uphold its side of the contract, so the project failed. Having been unable to find a willing partner in government to resolve the matter forced us to seek remediation for the repudiation of our contract, which has resulted in an arbitration award against Nigeria,” said Brendan Cahill, co-founder of P&ID.