Americas News
Buckeye Looking to Wind Down Caribbean Bunker Operations
U.S.-based Buckeye Partners L.P. [NSYE:BPL] (Buckeye) is looking to exit the Caribbean bunker market due to tough oil trading conditions in the area, reports TankTerminals.com.
According to reports, the bunker supply company is winding down its operations there and is expected to pull out of the "dirty product business" completely in the coming months.
While business was reportedly good when its Caribbean operations began two to three years ago, weakening demand and decreasing arbitrage opportunities have purportedly squeezed profits.
The company has also reportedly been expanding in other areas, having built a condensate splitter, expanded pipeline capacities and acquired several oil terminals from Hess Corporation.
The purchase, made in 2013, saw Buckeye take over Hess' storage terminal network on the U.S. East Coast and St. Lucia for $850 million.
Last September, Buckeye also announced that it would be buying a majority interest in a marine terminal and other midstream assets in Texas for $860 million from Trafigura AG.
