TEXAS--NuStar is considering a smaller expansion project, possibly at another location in St. Eustatius.
That is the word from NuStar management. In a written statement sent to The Daily Herald, NuStar confirmed that the company had withdrawn its request for a building permit to expand the terminal with some 30 tanks in The Farm area. This newspaper reported on the withdrawal of the building permit request in Tuesday's edition.
"It is with profound disappointment that we announce that several issues have arisen recently which have impacted the costs associated with the proposed expansion project. This has made the project economically unfeasible," stated management.
"The good news is that there is an opportunity for a smaller expansion, possibly in an alternate location. Given this turn of events, we have withdrawn the building permit application that we previously submitted to the government since a new permit would be required if we move forward with the smaller expansion."
According to management, discussions are "underway" for "another potential expansion" in St. Eustatius that would be smaller than the Cul de Sac project. This project would confirm an "important part of the terminal's continued growth and success" and would further increase NuStar's ability to invest in the island.
Management assured that St. Eustatius remained a "highly strategic location" for NuStar and that the company would "continue to pursue opportunities to invest in and expand the terminal in ways that are beneficial to the island and to NuStar." The statement mentioned the US $50 million water distillation expansion project currently being executed and nearing completion.
Management said it would continue to cooperate with St. Eustatius and its government. "As we did throughout this process, we will continue working to ensure that we have open and honest communications with the community and government. NuStar appreciates the support of our employees, the Island Government and other community supporters as we worked to develop our proposed Cul de Sac expansion project."
Source: http://www.thedailyherald.com/islands/1-islands-news/27701-nustar-considering-smaller-project-at-another-location-.html
