💧 Water and Power · U.S. Virgin Islands
WAPA said Vitol suspended propane supply to the territory
Official document: https://www.viwapa.vi/docs/default-source/news-(docs)/wapa-statement---vitol-suspension-letter---november-16-2022.pdf?sfvrsn=28dac14b_2
The Virgin Islands Water and Power Authority said on November 16, 2022, that it had received correspondence from Vitol stating that the company was suspending propane supply to the territory. WAPA said Vitol also sent a letter to Gov. Albert Bryan on November 16, 2022, and that the authority had received similar correspondence late in the prior week.
WAPA said it remained current on payments to Vitol for fuel deliveries and for operation of the propane facilities because it paid for fuel before delivery. The authority said it was in a dispute with Vitol over the amount of its capital lease obligation tied to the propane project.
According to WAPA, the lease obligation had been reviewed by the Virgin Islands Inspector General, which the authority said identified concerns involving the project's inception, execution and cost.
WAPA said Vitol's most recent proposal was a buyout under which the authority would pay $145 million. WAPA said it had already paid nearly $80 million for the capital lease, more than $40 million for operation of the propane system and nearly $400 million for fuel.
The statement did not include comment from Vitol.