Largest Caribbean refinery in USVI to close

first_img Share Share NewsRegional Largest Caribbean refinery in USVI to close by: – January 19, 2012 Tweet Sharecenter_img 26 Views   one comment Sharing is caring! USVI Governor John de Jongh. Photo credit: nevisblog.comST CROIX, USVI — The Caribbean’s largest oil refinery in St Croix, US Virgin Islands, is to close down by mid-February because of reduced fuel demand and increased international competition.The Hovensa refinery is a joint venture between the Hess Corporation and Petroleos de Venezuela SA. Losses at the 350,000 barrel-a-day facility have totalled $1.3 billion in the past three years, the company said on Wednesday in a statement. USVI Governor John de Jongh described the announcement as “a complete body blow” for the territory. He said Hovensa generated some $60 million a year in revenue for the local government, which already faces a budget crisis.“Given what we’re going through right now, this is the last bit of news that I wanted to hear,” de Jongh said in a media teleconference.The refinery will be converted to an oil storage terminal, said Brian Lever, president and chief operating officer of Hovensa LLC.“We deeply regret the closure of the Hovensa refinery and the impact on our dedicated people,” Lever said. “We explored all available options to avoid this outcome, but severe financial losses left us with no other choice.”The Hovensa refinery employs 1,200 workers with another 950 contract employees at the site, Alex Moorhead, a Hovensa spokesman, said. About 100 people will be retained to operate the terminal, he said.By Caribbean News Now contributorlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *