Governor of the United States Virgin Islands (USVI) Kenneth Mapp has announced an agreement that would reopen one of the world’s largest refineries on St Croix, creating hundreds of jobs in the territory, according to an OECS Business Focus report.
According to the report published on Tuesday, Mapp said the $1.4 billion agreement was between the government of the US Virgin Islands and ArcLight Capital Partners, LLC, the owners of what had been one of the largest oil refineries in the world, when it was shut down in 2012.
The article said that the “massive” deal includes reopening the refinery portion of the operation that, when restarted, will inject hundreds of millions of dollars into the local economy, generating new tax revenues.
It said that under the agreement with ArcLight Capital, approximately $1.4 billion will be invested to refurbish the existing refinery over the next 18 months. This investment is expected to create more than 1,200 local construction jobs.
“Once refinery operations commence at the end of 2019, as many as 700 permanent jobs will be created. The new jobs will be in addition to the more than 750 jobs now at the terminal storage facility. The initial refining operations provide for the processing of approximately 200,000 barrels of crude oil feedstock per day,” said the article.
Governor Mapp is quoted as saying, “This agreement is great news for the people of the Virgin Islands as we continue to grow and expand our economy.” He said it was tremendous news for the ‘big island,’ which felt the full brunt of the shutdown of refining operations in 2012. The Governor added that the capital investment will not only benefit St Croix but also help fund a new 110-room, “upscale lifestyle” hotel, flagged by a major four-star brand on St Thomas.
