Last Updated 14 years ago by Kenya Engineer
Operations in a liquefied petroleum gas (LPG) distribution terminal in Miritini, Mombasa are faced with a hurdle following the call by a firm to terminate the contract.
Unispan, the firm contracted by owner, African Gas and Oil to construct the sh1 billion terminal has moved to court claiming that African Oil and Gas had refused to pay for a certificate that ought to be issued by the project engineers thus exposing them to risk of loss and damage.
An injunction has since been issued against the oil company from using the LPG facility pending the hearing and determination of the case.
Construction of the 14,000 metric-ton liquefied petroleum gas discharge tank in the port city of
Mombasa begun in mid 2011. The storage plant is part of the firm’s $125 million plan. In their second stage of their plan, they intend to build 16 storage facilities with the capacity to hold 28,000 tons of LPG.
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