August 07, 2013

Venable plays key role in Virgin Islands energy conversion project

1 min

One of world's largest oil and gas trading companies will supply liquid propane to the Islands for five years


On July 25, 2013, at a ceremony on St. Thomas presided over by the Governor of the Territory, the U.S. Virgin Islands Water and Power Authority (WAPA) signed a long-term agreement with the Vitol Group, one of the world’s largest oil and gas trading companies.

Under the agreement, Vitol will construct and operate liquid propane receiving and storage terminals on St. Thomas and St. Croix, and supply liquid propane to the Islands for five years, enabling the power authority to convert its electric generation facilities from diesel fuel to the lower cost and cleaner burning propane. The total transaction value over the course of the five-year term is estimated to exceed $1.5 billion.

Mark Vecchio, Michael Sherman and retired partner Robert G. Smith have been instrumental in assisting WAPA in connection with this project.