By December 29, 2015 Read More →

Legislators debate US Virgin Islands oil refinery deal with US equity firm

US Virgin Island oil refinery closed in 2012

US Virgin Island oil refinery

A Boston-based equity firm is looking to reopen the US Virgin Island oil refinery after the facility was closed in 2012. photo.

CHARLOTTE AMALIE, Virgin Islands _ Legislators in the U.S. Virgin Islands are debating an $800 million deal that would allow a Boston-based equity firm to operate what was once the world’s largest oil refinery.

Senators met Tuesday to discuss whether the Hovensa¬†oil storage facility in St. Croix would be turned over ArcLight Capital Partners’ Limetree Bay Holdings. If the deal is approved, the U.S. territory would receive a $220 million upfront payment and would not be forced to borrow money for at least three years because it would receive a minimum of $7 million a year from Limetree.

The US Virgin Islands oil refinery closed in early 2012 after years of weak demand and high operating costs, delivering an economic blow to the island.

The Canadian Press

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