Americas News
Buckeye Buying Texas Oil Terminal
U.S.-based Buckeye Partners LP [NYSE:BPL] (Buckeye) says it is buying a majority interest in a marine terminal and other midstream assets in Texas for $860 million.
The assets include the deepwater terminal on the Corpus Christi Ship Channel, a condensate splitter and liquefied petroleum gas (LPG) storage complex in Corpus Christi, and three crude oil and condensate gathering facilities at the Eagle Ford Shale formation.
Trafigura AG is selling most of the assets, but will become a minority partner in the new company created by the deal, Buckeye Texas Partners, which will be 80 percent owned by Buckeye.
"This acquisition complements our portfolio of marine terminal assets in strategic energy hubs and further enhances the logistical solutions we can provide across these key energy markets," said Buckeye President and CEO Clark C. Smith.
Production from the shale field will be connected with the marine terminal infrastructure, creating a flexible logistics platform, ultimately including 5.6 million barrels of petroleum products storage.
The deal is expected to close later this month.
Last year Buckeye acquired Hess Corp.'s terminals on the U.S. East Coast and in St. Lucia for $850 million.
