Petroleum Authority of Thailand (PTT) has sued Unocal Thailand and Toyo Engineering Corp. for about $37.68 million for damages to its Rayong natural gas processing plant last year.
Unocal said it is confident it will prevail in the suit.
PTT alleges Unocal supplied mercury contaminated gas from Gulf of Thailand fields and Toyo provided poor plant construction.
The plant at Mab Ta Phud was crippled for 124 days in June-October 1989 because 10-25 mg of mercury per cubic meter of gas contaminated the gas stream, exceeding contractual specifications, PTT said.
The state oil company charges Unocal neither told it in advance of the contamination nor attempted to remove the mercury. PTT further claims Toyo is contractually liable for any defect or resulting damage to the $320 million, 350 MMcfd plant. PTT let contract to NKK of Japan to install a mercury decontamination system at the plant.
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