• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 8 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 1 day Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 17 hours The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May
  • 4 days What China is Learning from Russia's War in Ukraine and its Consequences

$3 Billion Caribbean Refinery To Close Its Doors For Good

The Limetree Bay refinery on the island of St. Croix will be shut down forever due to "extreme financial constraints."

"This was an extremely difficult decision for us," chief executive Jeff Rinker said in a statement, as carried by The Associated Press. "Unfortunately, this is our only option."

The investors in the facility had poured some $3 billion into their plan to revive the 210,000-bpd refinery.

The decision follows an order from the U.S. Environmental Protection Agency issued last month to shut down the refinery because of "multiple improperly conducted operations that present an imminent risk to public health."

The order followed a flaring session in mid-May, which released oil droplets over nearby neighborhoods. Following the release, the operator of Limetree Bay voluntarily shut down. According to the EPA, the refinery was violating the Clean Air Act because it was "substantially endangering public health, welfare, or the environment."

In addition to the oil droplets, the environmental authority found the Limetree Bay facility exceeded the limit of sulfur dioxide emissions, the EPA noted.

Following that order, the Governor of St. Croix, Albert Bryan Jr., issued a statement in which he welcomed the EPA's intervention.

"I have been assured by the CEO of Limetree Bay Refining that Limetree Bay is both willing and able to comply with the conditions set by the EPA to include the request for additional monitoring stations on the island," Bryan said last week.

The Limetree refinery was idle for four years until 2016, when ArcLight Capital Partners and EIG Global Energy Partners acquired it and set about to restart it.

Initially, the crude oil processing facility was supposed to resume operations in 2019, but the deadline was extended several times before the facility finally began operating last year. However, multiple problems caused a shutdown earlier this year, before the EPA's order shut it down again for at least two months. 

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News