Proposed New Owner For South Shore Refinery Plans To Turn It Into A Storage Facility
Hess Oil’s Lorrie Hecker
CHRISTIANSTED – The new buyer of the Hovensa refinery intends to scrap plans to operate the complex as a refinery, instead rebooting the troubled St. Croix-based asset as a storage facility with 15 million barrels of operable capacity, sources said Monday.
Limetree Bay Holdings, a subsidiary of Boston-based private equity firm ArcLight Capital Partners, has agreed to purchase Hovensa’s terminal assets for $184 million following the conclusion of Hovensa’s voluntary Chapter 11 bankruptcy, Hess spokeswoman Lorrie Hecker said Monday.
Hess and Venezuela’s PDVSA are co-owners of the troubled refinery, which was shuttered in January 2012 following three years of losses totaling around $1.3 billion.
Facing cash flow issues and a failed buyout attempt in January, Hess and PDVSA finally shut down the refinery’s remaining terminal and rack supply business.
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