Wood and Enterprise Settle Propane Project Lawsuit

21.11.2022 - John Wood Group has settled a lawsuit brought by Enterprise Products relating to delays on a propane dehydrogenation (PDH) project in Mont Belvieu, Texas, USA.

The UK group said it would pay Enterprise $115 million in one installment by Nov. 18.

Enterprise filed the lawsuit against Amec Foster Wheeler, a company Wood acquired in 2017, and one of its subsidiaries in Harris County Court, Texas in September 2016. The lawsuit claimed cost increases and delays on a cost-reimbursable plus fixed fee contract secured in July 2013 to engineer, procure and construct the unit.

The PDH plant started operation in early 2018 after Enterprise granted a new contract to Optimized Process Designs to complete the work. Enterprise subsequently decided to build a second PDH unit at Mont Belvieu, which is due to start up in the first half of 2023, producing nearly 750,000 t/y of polymer-grade propylene.

Author: Elaine Burridge, Freelance Journalist