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Future Uncertain for St. Croix Refinery in the Virgin Islands

Limetree Bay Energy recently announced that it will indeed shut in its 210,000 barrel per day St. Croix refinery indefinitely due to what the company has stated as “severe financial constraints.”  This refinery had been working to reinstate production since production was suspended on May 12, 2021 but was unable to secure funding to restart successfully.

St. Croix has experienced a number of operating issues in recent years, including a 60-day order last May to shut in by the U.S. Environmental Protection agency after a flaring incident that saw local residents and water supplies impacted by petroleum residue from the refinery.  With this latest public setback, the refinery lost funding and will not be moving forward as it is.

This large refinery has also experienced reported damage onsite due to internal corrosion and does not appear to be an attractive option for a new investor to begin any new production at the complex.  Limetree Bay has stated it will immediately begin an extended shutdown at St. Croix to purge all gas and oil from the units and lines.

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