Buckeye forms JV to develop new deepwater South Texas Gateway Terminal
Buckeye Partners has formed a joint venture with Phillips 66 Partners and Andeavor to develop a new deepwater, open access marine terminal in Ingleside, Texas. The terminal is expected to be operational by the end of 2019.
The South Texas Gateway Terminal, to be constructed and operated by Buckeye, will offer 3.4 million barrels of crude oil storage capacity, connectivity to the Gray Oak pipeline and two deep-water vessel docks capable of berthing Very Large Crude Carrier’s (VLCCs) as part of the initial scope of construction.
The facility can ultimately be expanded to include over 10 million barrels of storage capacity as well as multiple additional docks and other inbound pipeline connections. The initial construction of the terminal is supported by long-term minimum volume throughput commitments from credit-worthy customers, including Phillips 66 and Andeavor. Buckeye will own a 50% interest in the newly formed joint venture and Phillips 66 Partners and Andeavor will each own a 25% interest.
It will be constructed on a 212-acre waterfront parcel at the mouth of Corpus Christi Bay. The facility is positioned to serve as the primary outlet for crude oil and condensate volumes delivered off of the planned Gray Oak pipeline from the Permian Basin.
“The South Texas Gateway Terminal will serve as a premier open-access deepwater marine terminal in the Port of Corpus Christi,” said Khalid Muslih, Executive Vice President of Buckeye and President of Buckeye’s Global Marine Terminals business unit.
“This project expands our presence in the important Corpus Christi market, which we believe offers strong competitive advantages for waterborne shipments of crude oil and other petroleum products from the fast growing Permian and Eagle Ford shale plays.”
The company recently announced improvements to its existing flagship Buckeye Texas Partners terminal, which sits along the ship channel in the Port of Corpus Christi. The improvements have expanded its leading marine terminalling capabilities.
For more information, visit: www.buckeye.com
25th Apr 2018