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Thursday, June 20, 2024
HomeNewsLocal newsWAPA Board Extends Time to Sever Ties with Vitol

WAPA Board Extends Time to Sever Ties with Vitol

The original deadline to transfer propane infrastructure from Vitol to WAPA was Aug. 14. (Source file photo)

Members of the Virgin Islands Water and Power Authority’s Governing Board approved a 120-day extension for the transfer of propane infrastructure from Vitol Virgin Islands Corp., the company they have partnered with since 2013. The vote granting WAPA Executive Director Andrew Smith more time to finalize the severance of that relationship came during an emergency meeting held Friday morning.

The two entities reached a $145 million buyout deal on April 28, settling a dispute over WAPA’s payment schedule to Vitol. A statement issued by the utility on Friday said Smith will use the additional time to finalize the release of propane infrastructure and associated assets. Officials said the goal is to ensure a continuous supply of propane to power WAPA generators during the handover.

“The amended closing date for the agreement has been set for December 12, 2023, from the previous August 14, 2023. This extension will allow parties to the agreement to continue to work through the various work streams required to close the transaction,” the statement said.

Vitol and WAPA reached a tri-fuel conversion agreement in 2013 in an effort to manage the high cost of crude oil used to power utility generators.

WAPA Board Chair Kyle Fleming, along with Governing Board Secretary Juanita Young and board member Cheryl Jackson, approved the extension at the end of a 20-minute emergency meeting. Board member Hubert Turnbull voted no.

“We look forward to a seamless transition of assets to the Authority,” said Smith. “Upon completion of the agreement, it will have materially improved the energy security of the Virgin Islands.”

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