Acquisition of HOVENSA St. Croix Oil Refinery Complete

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HOVENSA Transaction At-A-Glance

  • Earlier this month (Jan. 7), ArcLight Capital Partners, LLC and Freepoint Commodities, LLC announced that Limetree Bay Terminals, LLC completed the acquisition of HOVENSA.
  • Technically, the purchase includes idle storage units / refining equipment / marine infrastructure associated with HOVENSA on St. Croix’s south shore.
  • ArcLight (headquartered in Boston) owns an 80 percent interest
  • Freepoint (headquartered in Stamford, Connecticut) owns a 20 percent interest
  • HOVENSA has been closed for nearly four years
  • Limetree Bay (LB) Terminals intends to hire approximately 200 new employees
  • HOVENSA formerly employed around 2,000 St. Croix residents
  • Limetree Bay Terminals will expand storage to its maximum potential of 32 million barrels by later this year
  • HOVENSA formerly stored only 13 million barrels
  • LB Terminals already completed deals with China Petroleum & Chemical Corporation for 10 million barrels of storage capacity leased for 10 years
  • The facility will also house 3 million barrels for Freepoint Commodities
  • The refinery / storage facility was attractive to buyers primarily due to St. Croix’s geographic location, the nearest U.S. territory to oil-rich Venezuela.
  • A previous attempt was made by Atlantic Basin Refining (ABR) to purchase the refinery under USVI Governor de Jongh
  • The Government of the Virgin Islands (GVI) voted to ratify the sale agreement Dec. 29, 2015
    • Ten senators voted in favor of the sale: Vialet; Blyden; Francis; Gittens; James; Graham; Forde; Liburd; Rivera-O’Reilly; and Sanes
    • Five senators voted against the sale: Roach; Young; Nelson; Harrigan; and Jackson

Sources: ArcLight Capital Partners, LLC via PR Newswire & The Virgin Islands Consortium

The sale of the HOVENSA oil refinery is great news for the St. Croix real estate market.  Contact Chris and Kerri Hanley today to find out exactly how it affects you as a buyer or seller.  With more than 45 years of combined real estate experience, they are the authority on Virgin Islands real estate and consistently among the top brokers on St. Croix.  Download their complimentary guide the 10 Best Reasons for Living on St. Croix.

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