Buckeye Partners has completed the acquisition of Chevron's New Jersey-based marine terminal.
Buckeye bought the facility, which stores liquid petroleum products, for $260 million (€212 million) in cash. Chevron will continue to be a key customer at the terminal under multi-year storage and throughput commitments.
With more than 4 million barrels of storage capacity, the terminal raises Buckeye's total liquid petroleum storage capacity to over 68 million barrels (6%). However, there is room for future expansion projects at the site as it has 'significant underdeveloped land available'.
The terminal, which features four docks and can be accessed via pipeline, rail or truck, is located in New York Harbor on approximately 250 acres of land. This is an advantageous acquisition for Buckeye as its Linden complex is based just six miles away.
'We expect its [the facility] integration into our network to proceed quickly... and we intend to initiate our planned commercialisation activities immediately,' says Buckeye Partners' president and CEO Clark Smith.
Smith also expects the terminal will 'provide Buckeye with security and diversity of product supply by directly linking our domestic pipeline and terminal network to an owned and operated marine facility through a new 16" pipeline to be built to our Linden complex'.
He adds: 'This will provide Buckeye with direct access to international and US Gulf Coast petroleum products imports. The facility also can serve as a link between our domestic assets and our BORCO facility in the Bahamas.'