A week after Gov. John deJongh Jr. said in a televised address he expects the recently decommissioned Hovensa refinery to upgrade and reopen, sell to someone who will, or the territory will sue, the administration has released its independent study concluding the refinery could be profitable with upgrades.
In July, the government commissioned a comprehensive analysis by the New York-based firm of Duff & Phelps of the Hovensa refinery operations and Hovensa's proposal to convert the site to an oil storage facility.
The study concluded that the “highest and best use” of the Hovensa facility is as an oil refinery and that such a refinery would be profitable if certain upgrades were made,” deJongh said in a statement earlier this week – conclusions he shared in his earlier televised address before releasing the study itself.
The study concludes the main impediment to Hovensa's profitability as a refinery lies in its dependence upon petroleum to fuel its own operations. And if it converted to liquid natural gas, it could overcome its structural disadvantage compared to stateside refineries and be economically viable as a refinery.
See the full report here: [Duff & Phelps – Hovensa Highest and Best Use].