Senators Approve Permit For Limetree Bay Terminal Expansion

ST. THOMAS — Senators who make up the 32nd Legislation on Thursday approved a major coastal zone permit clearing the way for Limetree Bay Terminals, LLC, to move forward with an expansion project at the south shore facility that would see the terminal being able to receive Very Large Crude Carriers, known as VLCCs.

It was only on Wednesday that the measure was heard during a Committee of the Whole hearing on St. Croix, and some lawmakers expressed frustration that the measure, in the form of Bill No. 32-0207, was special-ordered to the floor where the favorable action was taken.

Among the dissenters was Senator Janette Millin Young: “I am not happy that this measure was discussed in the Committee of the Whole yesterday and then placed on the agenda today. I want Limetree and any other businesses to succeed. However, the major issue was employment,” she said. “There was no information on the employment breakdown as it relates to the percentage of Virgin Islanders to be hired by Limetree.”

Senator Tregenza Roach wanted an opportunity to hear from more Limetree Bay officials before ratifying the measure. “My major concern is that the agreement requires that fifty percent of Virgin Islanders obtain managerial positions and whether that was fulfilled remains unanswered,” Mr. Roach said.

Even so, the measure was ratified with a majority of lawmakers voting in favor. Among them were Senators Kurt Vialet and Novelle Francis, both from the St. Croix District, who are eager to see the economy on said island grow. “This is $100 million investment that has been around for two and half years,” Mr. Vialet said. “It’s time to move forward. We have to embrace a rise in the economy and the expansion of St. Croix.”

“I have concerns such as climate change, global warming, and recent earthquake alerts. These are all legitimate concerns. Although there are risks, I want to see a boost in our economy and job employment for Virgin Islanders,” said Mr. Francis.

Last year, ArcLight Partners, LLC, the parent company of Limetree Bay, submitted an application to the Army Corps of Engineers (USACE) requesting a permit for the expansion. The expansion plan, which comes as part of an agreement between ArcLight Partners and China Petroleum & Chemical Corp., also called Sinopec, represents another step by Limetree Bay to fulfill its 2015 contract with the Government of the Virgin Islands. Part of the landmark deal saw the firm agreeing to $125 million in capital spending which, among other obligations, includes the buildout of its marine facility to accommodate VLCCs. The application was filed with USACE during President Donald Trump’s visit to China, where one of the president’s biggest multi-billion dollar deals was an energy investment from Sinopec to bring thousands of new jobs to hurricane-ravaged areas in Texas and the U.S. Virgin Islands.

During a press briefing late last year, Governor Kenneth Mapp made mention of the deal, which is non-binding, and hailed it as having a major effect on the territory’s economy, once it comes to fruition. The Limetree Bay USACE application, filed on November 8, is a sign that ArcLight Partners and Sinopec were ready to take a big step that would add much-needed, high-paying jobs to the U.S. Virgin Islands.

In June of 2016, the governor — fresh off his trip to China where he met with Sinopec officials — told residents that the territory was not ready for the amount of jobs that the Sinopec partnership with Limetree Bay would bring.

“I want to be clear to the people of the Virgin Islands that the significant amount of jobs to our economy, the number of jobs to be created, the revenues to be derived by the local government will be significant,” the governor said in June of last year.

And the application has also revived hopes of refining at the Limetree Bay Terminals through the Sinopec agreement, following Mr. Trump’s visit to China and the deals with Sinopec that derived from it. The talk of refining was first mentioned by the governor last year.

“It is the company’s intention that some level of refining will be necessary at the St. Croix refinery. I do no want to be construed as announcing today that the company has made a decision to turn on the refinery,” he said. “But for all intents and from all our discussions, and all of their plans having to do with blending of crude, and the storage of crude — there is a great possibility that the south shore refinery will, in fact, be restarted.”

Limetree Bay’s application to USACE, seen here, “seeks authorization to install a Single Point Mooring (SPM) and an underwater pipeline system for the offshore transfer of bulk fuel from Very Large Bulk Carriers to the existing facilities at the Limetree Bay Marine Terminal,” according to the description.

“The project would include the placement of two concrete coated 30 inches in diameter parallel pipelines from the end of the eastern jetty of the Limetree Bay Terminal to a Pipeline End Manifold (PLEM) to be located offshore at a water depth of approximately 150 feet below mean sea level. The system would then transition into three 24 inches in diameter hoses which would be suspended mid water at a depth of 150 feet to 250 feet to the Buoy Balance Position for the SPM,” the description adds.

In other action during today’s Session, lawmakers also approved the following measures:

• Bill No. 32-0209- An Act amending title 19 Virgin Islands Code, part II, subchapter II chapter 16, subchapter I, section 243, subsection (e) to change who is to serve in the capacity of the chairman on the V.I. Government Hospitals and Health Facilities Corporation and to add a new section to delegate who shall serve as the chairman of the St. Croix District Board for two years during the rebuilding process of the Juan Luis Hospital.
• And an Act amending title 18 Virgin Islands Code, chapter 21, section 556 relating to distance from the elections polls in which electioneering is prohibited.