ST. CROIX - U.S. Virgin Islands Governor Kenneth E. Mapp ahas reached an agreement which would reopen one of the world’s largest refineries, create hundreds of jobs in the Territory and shore up the solvency of the Government Employees Retirement System (GERS).
Governor Mapp said the $1.4 billion agreement was between the Government of the Virgin Islands and ArcLight Capital Partners, LLC, the owners of what had been one of the largest oil refineries in the world, when it was shutdown in 2012. The massive deal includes reopening the refinery portion of the operation, which when restarted, will inject hundreds of millions of dollars into the local economy, generating new tax revenues.
Under the agreement with ArcLight Capital, the owners of what is now called Limetree Bay Terminals, the company will invest approximately $1.4 billion to refurbish the existing refinery located in St. Croix.
Once refinery operations commence at the end of 2019, as many as 700 permanent jobs will be created. The new jobs will be in addition to the more than 750 jobs now at the terminal storage facility. The initial refining operations provide for the processing of approximately 200,000 barrels of crude oil feedstock per day.
“This agreement is great news for the people of the Virgin Islands as we continue to grow and expand our economy,” said Governor Mapp, who noted it is tremendous news for the ‘big island,’ which felt the full brunt of the shutdown of refining operations in 2012.
He added that the capital investment will not only benefit St. Croix since the revenues from the agreement will shore up the solvency of GERS, but it will also help fund a new 110-room, “upscale lifestyle” hotel, flagged by a major four-star brand on St. Thomas.
This landmark deal to jumpstart our recovery and to pave the road to better times … requires us to move expeditiously if the refinery is to restart on schedule,” said Governor Mapp. “I look forward to working with members of the Legislature and our partners at Limetree Bay to realize its potential for the benefit of all of our people.”
Infomation courtesy of www.vi.gov.