Vitol suspends flow of propane to Virgin Islands power plants

May 9, 2017 By    

Vitol suspended the flow of LP gas to two U.S. Virgin Islands Water and Power Authority (WAPA) power plants because of outstanding invoices for propane that Vitol delivered to the power plants over the past three months, according to WAPA.

WAPA, which says it continues to manage cash-flow challenges, reverted to using fuel oil as a result of the dispute with Vitol.

Despite the suspension of propane to WAPA’s generation plants, Vitol continues to transport fuel from its very large gas carrier, anchored off the southwest coast of St. Thomas, to the LP gas terminals in Krum Bay, St. Thomas, and Estate Richmond, St. Croix, WAPA says.

“While there is an existing contractual dispute between Vitol and WAPA and an outstanding invoice for propane fuel delivered to the power plants over the past three months, we remain optimistic that we will reach an agreement on the issues at hand,” says Julio Rhymer, CEO of WAPA, and Elizabeth Armstrong, WAPA board chairwoman.

Arrangements have been made for deliveries of fuel oil to both power plants this week, WAPA adds. WAPA customers have not experienced interruptions of electricity service because of the current dispute.

About the Author:

Megan Smalley was an associate editor at LP Gas magazine.

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