Delta Petroleum Limited (Caribbean) has revealed that their attempt to convince the BVIEC to resort to a cleaner option of fuel resulted in the termination of their contract, after failing to provide the No.2 Diesel Fuel as contractually obligated.
This is according to a press release from the Delta Petroleum Group Chief Executive Officer Carlos Robles who said the company was totally surprised and disappointed by the BVI Electricity Corporation’s (BVIEC) recent statement.
The CEO said the press release was aimed at setting “the record straight regarding the supply of No. 2 Diesel Fuel to BVIEC.”
Robles said the war between Russia and Ukraine significantly impacted the availability of No. 2 Diesel Fuel and upon noticing the imminent issue, their company reached out to request a meeting with BVIEC’s management.
He said after weeks of requesting the meeting, one was finally had.
“On April 8, 2022, Delta requested a meeting with BVIEC Management to identify alternative fuel solutions. Delta was acutely aware of the far-reaching implications for BVIEC and the BVI’s people, businesses, and economy. We did manage to meet with the Chair of BVIEC on April 13th. However, despite numerous requests, written and oral, BVIEC Management was unwilling to meet and discuss the situation and risk that it posed,” Robles stated.
He added, “Delta and BVIEC Management finally met on May 5, 2022, one month after Delta had formally raised the risk and its concerns.”
ULSD was delivered as an alternative option
The CEO did not reveal the overall consensus of the meeting but said just days after, Delta delivered Ultra Low Sulphur Diesel to the company instead of the No. 2 Diesel Fuel.
“Delta was determined that BVIEC’s fuel supply should be maintained. An extraordinary supply of 100,000 gallons of Ultra Low Sulphur Diesel (ULSD) was indeed delivered on Monday May 9, 2022,” Robles stated.
The CEO said that less than 24 hours later, the BVIEC terminated their contract on May 10, 2022.
Delta pleaded with BVIEC to seek alternative fuel
CEO Robles also disclosed that during the company’s contract negotiations last year, they implored the BVIEC to consider having ULSD as a backup supply plan, in light of the No. 2 Diesel demand being less than 5 percent in the region.
He said ULSD is the more environmentally friendly option and he sought to explain why the demand for No. 2 Diesel was dwindling in the Caribbean.
“Delta’s position was based on known No.2 Diesel Fuel supply concerns, and the fact that No.2 Diesel Fuel is environmentally unfriendly (dirtier than other suitable and readily available fuels), which is surprising given BVIEC’s well publicized Green initiatives,” he said.
“Specifically, on October 26, 2021, Delta warned BVIEC Management and Board in a formal presentation that ULSD should be included in its Supply Agreement to mitigate the identified risk to No.2 Diesel Fuel supply. ULSD is in plentiful supply and is a more environmentally friendly product causing less pollution/environmental impact,” he further explained.
Roble said the BVIEC chose to ignore Delta’s professional advice.
What BVIEC said”
Just last Tuesday the BVIEC issued a press statement rubbishing claims that they have been deliberately concealing information relating to its Fuel Supply Agreement with Delta Petroleum.
The BVIEC disclosed that there was a communication breakdown by Delta after they failed to fulfill their contractual obligations.
The Electricity Corporation said that they have already commenced the process to secure a new source for fuel, therefore replacing Delta Petroleum which was initially contracted until 2026.