Page 5 - LatAmOil Week 25 2021

COMMENTAR
LatAmOil COMMENTARY Y LatAmOil

The change of ownership did not put an end to Capital Partners, quit the project and removed
questions about the refinery’s ability to clean up the refinery from its portfolio of assets in April,
its act. Limetree Bay Ventures brought the facil- after its fund racked up hundreds of millions of
ity back online earlier this year but found itself dollars in losses.
at odds with the US Environmental Protection This is not certain, as the news of ArcLight’s
Agency (EPA) shortly afterwards. The restart exit did not go public until earlier this month,
prompted many complaints, with residents of when Reuters published an exclusive report on
nearby neighbourhoods saying that noxious the subject. However, the two developments are
odours were emanating from the facility, causing probably related, given that ArcLight had actu-
people to feel sick and forcing the closure of local ally been the majority partner in Limetree Bay
schools and government offices. Ventures.
Meanwhile, others living nearby said that the
release of steam, feedstocks and various chem- Economic consequences
icals had been contaminating their homes and Whatever the case, the suspension of operations
water supplies. at the plant is likely to hurt the USVI economy. Limetree Bay
These assertions gained traction, as they were In the short term, Governor Bryan has noted Ventures had
linked to two documented incidents that caused Limetree Bay Ventures’ decision is likely to lead
toxic droplets to fall upon residential and indus- to the loss of up to 800 jobs, including 600 direct been hoping to
trial areas near the plant. They also led the EPA positions and another 200 or so indirect posi-
to scrutinise the refinery more closely – and to tions in related industries. The company has use the refinery
lobby for the installation of a more advanced already informed around 271 of its employees
monitoring system to prevent another such that they will be laid off on September 19, Reu- to produce
incident. ters reported earlier this week. low-sulphur
It also noted that the oil storage terminal
Money problems associated with the refinery would remain in fuels for BP
Limetree Bay Ventures has been trying to meet operation. This will help preserve a few hundred
that condition, though it has quibbled with the jobs, but it is unlikely to compensate for other
EPA over the question of whether the installa- problems – including the fact that closure will
tion of new monitors ought to be mandatory or prevent the US territory from collecting any of
voluntary. However, it has not been able to do so. the revenues that the refinery was supposed to
More specifically, it has not been able to drum generate in the long term.
up enough money to cover the cost of installing Limetree Bay Ventures had been hoping
a monitoring system that would meet the EPA’s to use the refinery for the potentially lucrative
requirements. It remained publicly optimistic purpose of producing low-sulphur petroleum
up until last week, when company representa- products for BP (UK).
tives told USVI Governor Albert Bryan Jr. that Now these hopes have been dashed. As a
Limetree Bay Ventures was both willing and able result, the plant’s 350,000 barrels per day (bpd)
to take the steps needed to restart the plant. But of nameplate capacity will remain idle for the
its hopes appear to have withered. time being – and perhaps even longer, if USVI
This may be a consequence of the fact that authorities decide to give up on the refinery per-
one of its founding shareholders, ArcLight manently. ™

The terminal associated with the refinery will remain open (Photo: Limetree Bay Ventures)

Week 25 24•June•2021 www. NEWSBASE .com P5