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Tue, May 14 | 11:23 pm

Aruba Minister Announces Cheap Oil Shipments, But Refinery Piers Are Crumbling

by | Apr 25, 2024

Aruba’s Minister of Energy, Glenbert Croes, announced some welcome news for the island: several ships carrying cheap oil are arriving in the coming months. This will help reduce the price of water and electricity for residents. However, there’s a critical hurdle – the refinery piers are in shambles, jeopardizing these deliveries.

Several piers have already succumbed to neglect, collapsing entirely. The remaining ones are rapidly deteriorating. Consequently, oil deliveries are currently being made through the smaller piers previously used for gasoline. Unfortunately, these piers are also in poor condition and expected to fail soon.

This impending crisis could grind the refinery to a halt, as receiving fuel oil would become impossible. The government acknowledges the situation’s seriousness, but there’s no quick fix. The Eagle LNG project and the hydrogen plant are both in the planning stages, years away from operational status.

Time is of the essence. The government must find a way to get the oil to the refinery to prevent a shutdown that could cripple Aruba’s economy. The refinery is a major employer and fuel supplier for the island’s power plants. A shutdown would result in job losses, power outages, and inflated prices for goods and services.

The government is crafting a long-term plan for the refinery, but immediate action is needed to address the crumbling piers. Potential solutions include:

  • Emergency repairs: Allocate funds to immediately repair the smaller piers currently used for fuel oil deliveries. This temporary fix would buy time for a more permanent solution.
  • Alternative offloading locations: Investigate the possibility of offloading oil from tankers onto barges at a different location for transport to the refinery. This complex solution would require additional infrastructure and logistics.

Long-term solutions could involve:

  • Pier reconstruction: A complete rebuild of the refinery piers would be the most sustainable option, ensuring the facility’s long-term viability, but it’s a significant undertaking.
  • New offloading facilities: Constructing new offloading facilities away from the current problematic piers could be a more cost-effective option than complete reconstruction.
  • Refinery relocation: As a last resort, if the current location proves too challenging for repairs or new infrastructure, exploring the possibility of relocating the refinery altogether might be necessary. This drastic option would be very expensive and complex.

The Aruban government faces a tough decision. They must carefully consider the cost, implementation timeline, and the long-term viability of the refinery itself to choose the best course of action. A swift and well-chosen solution is crucial to prevent a situation that could have severe consequences for Aruba’s economy.pen_sparktunesharemore_vert

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