Refining deal will lead to First New Hotel Built in USVI in over 38 years
ST. THOMAS — Revenue generated from a new deal between the Virgin Islands Government and ArcLight Capital will lead to the development of an upscale hotel at Yacht Haven Grande, Governor Kenneth Mapp announced Monday.
The news came via a press conference held at Government House on St. Croix.
The Deal in a Nutshell
The unratified agreement provides for the processing of about 200,000 barrels of crude oil feed stock per day at facilities that were formerly Hovensa’s on St. Croix.
ArcLight, the parent company of Limetree Bay Terminals, will invest about $1.4 billion to renovate the existing refinery over the next year and a half. After refurbishing the facility, the Mapp administration is hoping that there’ll be actual refined product on the market by January 2020.
The governor quoted industry consultants Gaffney-Cline and Associates when projecting a government revenue of more than $600 million during the first 10 years of refining operations. This income will be added to the $11.5 million that the government already collects annually from Limetree’s oil storage operations.
Read more: https://viconsortium.com/breaking-news/first-new-hotel-built-in-territory-in-over-38-years-mapp-says/