Hovensa will continue to make fuel available to the community through its truck-loading rack at least through February, while negotiations continue on the future of the oil refinery facility on St. Croix, Government House announced Saturday
The government and Hovensa have agreed to continue the current, interim agreement, whereby the shuttered refinery provides fuel for sale at its rack, until not later than Feb. 28. At that time any further extension or successor agreement will be concluded and presented to the 30th Legislature for its review and approval, according to Government house.
The agreement that has now been extended expressly confirms Hovensa’s commitment to supply fuel to the island of St. Croix during the extension period through its distribution rack, allaying local concerns of a possible fuel shortage after the new year extended. The extended agreement permits Hovensa to continue to operate an oil storage facility at the refinery site as was permitted in the interim agreement concluded last March.
In the statement from Government House, Gov. John deJongh Jr. said he believed the parties had “made important progress towards finding a framework for moving forward towards the goal of finding the best resolution to the issues raised by the closing of the refinery earlier this year.”
“The owners of Hovensa want an arrangement that allows them to operate an oil storage facility, while I continue to believe that a refining operation is the best possible outcome in terms of employment and revenues for the territory,” deJongh said. “I am hopeful that we will continue to make progress on reconciling our respective positions.”
A Hovensa spokesman said Saturday that Hovensa is “continuing to work to achieve an amicable resolution that best serves the interests of both the company and the Virgin Islands.”
