British oil major BP may stop oil supply to the Limetree Bay refinery in St. Croix, Virgin Islands if it fails to successfully resume operation by December. The refinery’s owner, Limetree Bay Ventures, spent at least $2.7 billion expanding the facility’s capacity to 210,000 bpd in a bid to meet the growing demand for low-sulfur marine fuels. However, the coronavirus pandemic crushed refining margins, and the refiner experienced problems in restarting the crude unit.
BP invested in the plant, which includes crude oil supply and product marketing deals. BP has an option to terminate the agreement if the facility fails to reach a specific production target by the end of 2020. With the plant problem, the investment is less attractive for BP. At the same time, BP is under a major transition to cut fossil fuel operations and focus more on renewable energy.
