Pennsylvania Petrochemical Complex Arbitration Dispute
Project name: Pennsylvania Petrochemical Complex Arbitration Dispute
Client: Confidential / Unable to Disclose
Date: 2021 - 2022
Location: Pittsburgh, PA, USA
End Market: Industrial
Services Provided: Dispute Resolution - Arbitration Dispute
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SOCOTEC Advisory was retained by outside counsel representing an industrial gas products company (Claimant) in a dispute against a world leader in gas technology (Respondent). The dispute involved a cryogenic air separation unit (ASU) and an associated pipeline booster compressor that supply industrial grade nitrogen to Shell Oil Company's Pennsylvania Petrochemicals complex in Beaver County, PA outside Pittsburgh.
A detailed Report of Findings and subsequent Responsive Report were submitted by SOCOTEC in the arbitration proceeding. The Responsive Report specifically addressed assertions made in the opposing technical experts’ initial report. The Parties had entered into a Nitrogen Supply Agreement back in October 2017. The dispute centered around claims of force majeure due to COVID-19 lockdowns by the defendant and the hourly and daily operations of the pipeline booster compressor towards the backend of the ASU process, the gaseous nitrogen (GAN) pipelines, and the custody transfer gas measurement equipment. Our SOCOTEC experts extensively analyzed actual pressure and flow rate data from the ASU data historian and performed relevant engineering calculations to formulate the opinions. SOCOTEC provided exceptional assistance to the client and its counsel, and recently helped successfully close out the case with a favorable settlement for the client.