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The Limetree Bay petroleum refinery’s installations can be seen at St Croix, US Virgin Islands. 28th of June, 2017. Alvin Baez/Reuters 12 JULY (Reuters) – On Monday, the owners of the troubled Limetree Bay refinery on St. Croix filed for bankruptcy, just months after the Caribbean facility reopened for the first time in over a decade, only to run afoul of locals and US environmental regulators. Following a series of mishaps, including adjacent neighborhoods being sprayed with a petroleum mist, causing inhabitants to complain of respiratory problems and unpleasant odors, Limetree Bay Refining was forced to file for bankruptcy, according to a statement released by the company. In February, the St. Croix refinery reopened in order to capitalize on rising demand for lower-sulfur fuels and its Caribbean location. Limetree Bay’s chief executive, Jeff Rinker, stated in a statement that “severe financial and regulatory restrictions have given us little choice but to continue this path, after careful evaluation of all alternatives.” The refinery had been closed for over a decade when new owners devised plans to reopen it in 2020, a plan that was more than a year behind schedule and over budget by more than $1 billion. The plant was refurbished ahead of the restart in an attempt to profit from an international clean-air maritime fuel regulation known as IMO 2020, but the COVID-19 epidemic caused delays, cost overruns, and a drop in fuel demand. Residents complained after the 210,000-barrel-per-day factory was restarted in February. According to Reuters, the facility was also not monitoring for sulfur dioxide as required by law, and the plant was shut down in May by US environmental officials. find out more To protect the local population, the US Environmental Protection Agency (EPA) has ordered Limetree Bay to boost air monitoring and take corrective measures. The EPA handed the plant an extra two weeks to finish its closure on Monday. According to records filed with the United States Bankruptcy Court for the Southern District of Texas, the company’s owner stated that it had between one and 49 creditors, assets between $1 million and $10 million, and liabilities of less than $50,000. David Gaffen contributed reporting, and Richard Pullin edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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