Squire Patton Boggs represented the US Virgin Islands Public Finance Authority in a multi-year effort leading to the resumption of critical fuel deliveries to the US Virgin Islands (USVI) and the subsequent $145 million purchase of liquified petroleum gas (LPG) infrastructure utilizing federal funding to help stabilize the USVI electrical grid.
An SPB team comprised of legal and public policy professionals was retained to reengage and facilitate negotiations with Vitol Inc., the USVI’s sole contractual supplier of propane gas, after the company ended shipments due to non-payment and ongoing contract breaches by the Water and Power Authority (WAPA), which operates under the supervision of the US Virgin Islands Public Finance Authority. The interruption of shipments led to power disruptions across the Territory.
Following successful discussions that included senior members of the U.S. Department of Energy and the White House, Squire Patton Boggs assisted WAPA on its $145 million buyout of Vitol’s LPG fuel facilities on St. Thomas and St. Croix, which was funded by a U.S. Department of Housing and Urban Development grant.
During a recent press conference USVI Governor Albert Bryan Jr. described the deal as “transformative” as it would free up millions from WAPA’s balance sheet while adding new assets and giving WAPA the ability to go to the open market to negotiate cheaper fuel rates in the future.
The Squire Patton Boggs team was led by the firm’s Global Projects Partner Karol Denniston and principal David Schnittger.