The oil refinery in St. Croix, US Virgin Islands now being resuscitated is expected to benefit from the stricter regulations for ships’ fuel, imposed by the International Maritime Organization.

Limetree Bay Refining, LLC reached agreement with BP’s supply and trading arm late in 2018 for tolling, supply and offtake of the restarted refinery at Limetree Bay. Once one of the world’s largest, the former Hovensa oil refinery, a joint venture between Hess and Petroleos de Venezuela, stopped processing oil in 2012. After bankruptcy filing, it was sold to ArcLight Capital Partners and Freepoint Commodities in 2015, both of which operate Limetree Bay Terminals, its massive (25-million barrel) storage facility and capable marine terminal. Once producing (in the 1970s) up to 650,000 barrels per day, the facility’s new owners hope Limetree Bay will be able to produce up to 200,000 bpd by January 2020. At that time, expectations are that the plant will be producing fuels approved to meet the International Maritime Organization’s new mandate for ships’ fuel. As of January 1, 2020, a global sulphur limit of 0.50% m/m will be enforced and the Limetree Bay facility is expected to benefit from lower prices for crude and high demand for its refined products. Financing for this project includes 550 million USD of preferred equity and a $700 million term loan. Some 1,300 workers are engaged in getting this refinery up and running.