Limetree Bay Refining has reached an agreement in principle with the supply and trading arm of a major international oil company on the restart of the idled St. Croix refinery in US Virgin Islands.
As part of the agreement the oil company, which has not been named, would enter into a tolling agreement and serve as the refinery's supply and offtake counterparty.
Limetree Bay Refining anticipates completion of the restart by late 2019.
Limetree Bay Terminals bought the refinery and associated terminal assets out of bankruptcy in 2016. Since then the company has returned more than 25 million barrels of storage capacity to service.
In addition, the company has spent the last two years exploring opportunities for a restart and earlier this year negotiators a new operating agreement, which was ratified by the 32nd Legislature of the Virgin Islands.
Brian Lever, president of Limetree Bay Refining, says: 'The refinery restart project is the product of a collaborative effort with many Virgin Islanders. My team and I look forward to further advancing the refinery restart and the positive impact we hope to have on the local community through jobs, taxes and economic activity.
Kenneth E. Mapp, Governor of the Virgin Islands, adds: 'The refinery will bring at least $1.5 billion in outside investment over the next 14 months. Over the next ten years, the restarted refinery will product hundreds of millions of dollars in new direct revenues to the government. I am grateful to our partners at Limetree Bay for creating this opportunity, and I look forward to a productive and collaborative relationship with both companies now and in the future.'
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