USVI: Oil refinery to reopen under $1.4B deal with ArcLight

July 02, 2018 - 9:23 pm

CHARLOTTE AMALIE, US Virgin Islands (AP) — The U.S. Virgin Islands says it has reached a $1.4 billion deal to reopen one of the world's largest refineries in a move expected to boost the U.S. territory's economy.

Gov. Kenneth Mapp said Monday that private equity firm ArcLight Capital Partners LLC will restart a St. Croix refinery that closed in 2012. He said refinery operations will start in late 2019 with an estimated 200,000 barrels of crude oil to be processed daily. Mapp said revenues could top $600 million over the first 10 years and that hundreds of jobs will be created.

Legislators still have to vote on the deal that would see 50 percent of annual revenues go toward the island's public pension system. Mapp said remaining revenues will help build an upscale hotel in St. Thomas.

AP Editorial Categories: 
Comments ()