Islands
Major oil refinery to close in US Virgin Islands
ST. CROIX, U.S. Virgin Islands — The giant Hovensa oil refinery that has dominated the economy and part of the landscape of the island of St. Croix for decades will cease operations next month, the operator said Wednesday.
The refinery, the largest employer in the U.S. Virgin Islands and once one of the largest refiners in the Western Hemisphere, will shut down and be converted to an oil storage terminal, said Brian K. Lever, president and chief operating officer of Hovensa LLC.
Losses at Hovensa, a joint venture of U.S.-based Hess Corp. and Venezuela’s state-owned oil company, have totaled $1.3 billion over the past three years and were projected to continue due to reduced demand caused by the global economic slowdown and increased refining capacity in emerging markets, Lever said in a statement.
“We deeply regret the closure of the Hovensa refinery and the impact on our dedicated people,” Lever said.