USVI Legislators to Debate Hovensa Deal With US Equity Firm
CHARLOTTE AMALIE, U.S. Virgin Islands — Legislators in the U.S. Virgin Islands are debating an $800 million deal that would allow a Boston-based equity firm to operate what was once the world’s largest oil refinery.
Senators met Tuesday to discuss whether the HOVENSA oil storage facility in St. Croix would be turned over ArcLight Capital Partners’ Limetree Bay Holdings. If the deal is approved, the U.S. territory would receive a $220 million upfront payment and would not be forced to borrow money for at least three years because it would receive a minimum of $7 million a year from Limetree.
The refinery closed in early 2012 after years of weak demand and high operating costs, delivering an economic blow to the island.