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WAPA Receives 12 Responses to Invitation for Bid for Fuel Oil Supply

(Monday, August 27, 2012)

 

 

The Virgin Islands Water and Power Authority

NEWS RELEASE

Contact:  Cassandra Dunn, Director of Corporate Communications

340-773-2250 extension 4085 or 340-690-5758

www.viwapa.vi

Monday, August 27, 2012  

The Virgin Islands Water and Power Authority (VIWAPA) has received twelve responses to its Invitation for Bid (No. IB-01-13) from entities interested in supplying No. 2 Distillate Fuel Oil for the utility’s generating facilities in Krum Bay, St. Thomas and Estate Richmond, St. Croix.  The invitation was issued on August 6 with a deadline date of August 22.  The purchase agreement will be for one (1 year) and can be automatically renewed by the parties for a period not to exceed nine (9) months.

According to VIWAPA Executive Director Hugo V. Hodge, Jr. the utility’s management team and technical and legal consultants have begun evaluating the bid proposals and will start interviewing companies next week to determine a short list of potential suppliers. Companies positioned on the short list will then be scheduled for negotiations. Hodge said that WAPA expects to complete negotiations and make a final decision for a fuel oil supplier by the beginning of October and seeks to purchase fuel for delivery beginning no later than December 1. The utility will require delivery of up to 80,000 barrels per shipment based on generation needs in the two power plants.

The IFB for #2 fuel oil, originally released in March after HOVENSA announced in January that it would cease refinery operation, was reissued earlier this month. Only a single response to that invitation was received by the April 10th deadline. Hodge said at the time that despite great interest shown by

potential bidders, it was possible that most suppliers determined they could not compete with the discounted prices of HOVENSA after Governor John P. deJongh, Jr. secured a commitment from the refinery to provide fuel oil at below market prices through the end of the year. Hodge also said that WAPA’s management and technical teams were confident, based on feedback from major fuel suppliers over the last several months, that WAPA would receive competitive responses to the most recent bid invitation.

Bid responses were received from the following twelve companies:

  1. Vitol, Inc.                                                                       Houston, TX
  2. Novum Energy Trading Corp.                                    Tortola, BVI
  3. Chevron Products Company                                      Houston, TX
  4. Shell Western Supply & Trading Limited                 Bridgetown, Barbados
  5. Raindrop Petroleum                                                   New York, NY
  6. Cardinal Connor Associates                                       St. Croix, VI
  7. Caribbean Logistics                                                     St. Thomas, VI       
  8. Trafigura AG                                                                 Bayamon, PR
  9. Peerless Oil & Chemicals, Inc.                                   Penuelas, PR
  10. IS International Services, LLC                                    Lawrenceville, GA
  11. Hovensa, LLC                                                               St. Croix, VI
  12. L’Oil,Inc.                                                                       Nashville,TN                                                       

 

The Authority will periodically update the public about its progress in securing a new fuel supplier at the best possible price for the utility’s customers, said Hodge.