Americas News
BORCO Announce Bunkering Plans at Storage Facility
Bahamas Oil Refining Company International Limited (BORCO), a subsidiary of Buckeye Partners, L.P. (Buckeye), have said the Grand Bahama storage terminal "is the logical, geographical, optimum spot for a new 'Bunker filling station'."
In Buckeye's investor presentation the Houston, Texas, based firm said there was also "strong interest in setting up a crude topping unit" (CTU) at the 21.6 million barrel storage terminal, with the key driver being a need for low sulfur fuel oil.
A CTU could also generate Gulf Coast export opportunities for the business.
The company also revealed it has approval for a 4.7 million barrel storage capacity expansion at the BORCO facility, which the company says is already the largest storage terminal facility in the Caribbean, adding the project was already "well underway."
The first phase of the expansion will see capacity increased by 3.5 million barrels, with the first 1.9 million barrels to be in-service by the middle of 2012, and the additional 1.6 million barrels by Q2 2013.
Phase two will add another 1.2 million barrels and will be completed, and in-service by, the third quarter of 2013.
The increase was supported by a long-term contract with a "major customer" the firm said, and there was also a longer term opportunity to double existing capacity.
Improved Service Offerings
The news comes three months after Buckeye signed an agreement with Chevron U.S.A. Inc. (Chevron) in February 2012, to secure New Jersey based marine terminal facility, Perth Amboy for $260 million in cash.
Buckeye also said the link between Perth Amboy on the Arthur Kill strait, inland pipelines and BORCO’s Bahamian facility improves “service offerings” for Buckeye’s customers and providing further support to Buckeye’s planned clean products tankage expansion at the BORCO facility.”
Buckeye’s President, Clark C. Smith who took over as CEO in February 2012, said he believed the “unparalleled connectivity" they now have within their international logistics chain combined with “our best-in-class operations and exceptional service capabilities, truly differentiate us from the competition.”
