June 27, 2021 [Bunkerspot] – Limetree Bay Energy is suspending its plans to restart the refinery ‘indefinitely’, citing ‘severe financial constraints’.
As previously reported, last month, Limetree Bay announced a temporary suspension to refinery production activities following a flaring incident at the St. Croix facility which the company said had resulted in a release of oil droplets in the vicinity. The EPA subsequently ordered Limetree Bay Terminals, LLC and Limetree Bay Refining, LLC to pause all operations at the facility.
Last week, the EPA imposed additional air monitoring requirements on the company, citing ‘repeated, recent incidents’ at the facility which it said had raised ‘significant health concerns’.
In statement issued yesterday (21 June), Limetree Bay said it had been unable to secure the necessary capital to restart its petroleum refining and processing operations, and that it would have to reduce the refinery’s workforce by approximately 271 employees, effective 19 September.
‘This was an extremely difficult decision for us, and we are truly saddened to announce suspension of our restart plans for the refinery,’ said Jeff Rinker, Limetree Bay’s CEO. ‘Our personnel have demonstrated tremendous commitment and dedication in restarting the refinery, and we continue to be proud of their hard work. Unfortunately, this is our only option, given the extreme financial constraints facing the company.’
Limetree Bay will begin preparing the refinery for an extended shutdown, which includes safely purging gases from all of the units and removing any residual oil and products in the lines.
The company confirmed that its oil storage terminal will not be affected by the decision to suspend the restart of the refinery and will continue in operation.
The announcement marks the end of a torrid few months for Limetree Bay, which acquired the refinery in 2015 but, following several years of setbacks, only began production at the facility in February this year.
In April, Bunker One announced that the 12,551 DWT MT Desna Star has been added to its fleet to support a newly launched St Croix physical supply operation.
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