Friday is Last Day for Most Limetree Bay Refinery Employees as Closure's Economic Impact Ripples

[TexasTowelie]

Friday is Last Day for Most Limetree Bay Refinery Employees as Closure's Economic Impact Ripples Through St. Croix


ST. CROIX — While a potential sale of the Limetree Bay Refinery may come later this year, which would mean the possibility of oil refining at the south shore facility along with employment and an economic boost to St. Croix, the company will lay off the bulk of its remaining 275 employees on Friday as it winds down operations for an indefinite suspension.

Meanwhile, proceedings are continuing in bankruptcy court in Texas, and a sale of the refinery could happen in the closing months of 2021. The deadline for a sale, as per the court, is November 1. The refinery's future is dependent on a potential buyer's intentions, though most potential buyers would be expected to resume oil refining at some point as billions of dollars have been poured into the refinery for the main purpose of oil refining. Limetree Bay on February 1st announced the resumption of oil refining but on June 21 suspended all production following incidents the facility suffered.

Another sign of the immanency of the refinery's dwindling activity was Limetree Bay Terminals' announcement Monday that it would layoff 35 employees in a reorganization effort resulting from the refinery's closure. Limetree Bay Refining was Limetree Bay Terminals' largest customer.

The economic impact from what was once the territory's largest employer is already being felt both in the central government, on local businesses and on individual lives. The Bryan administration's touting of a $71 million budget surplus can no longer be boasted in part due to the refinery's closure along with the spend of $45 million to $50 million on gov't employees based on a promise to repay the 8 percent salary reduction. Additionally, the Bryan administration had to include $30 million in federal funds from the American Rescue Plan as an offset to meet budget projections. All considered, the government found itself in a deficit — $20 million from refinery projections and the inclusion of $30 million from Covid dollars to meet budget demands — of $50 million.

Read more: https://viconsortium.com/vi-business/virgin-islands-friday-is-last-day-for-most-limetree-bay-refinery-employees-as-closures-economic-impact-ripples-through-st-croix