Buckeye Partners LP has completed its purchase of a liquid petroleum products marine terminal in New York Harbor from Chevron USA Inc. The terminal sits on about 250 acres in Perth Amboy, NJ, only 6 miles from Buckeye's Linden, NJ complex. It includes more than 4 million bbl storage, four docks on the Arthur Kill, and pipeline, rail, and truck access.
Buckeye will connect the Perth Amboy terminal directly to its domestic pipeline and terminal network through a 16-in. OD pipeline to be built to its Linden complex. The connection will provide Buckeye with direct access to international and US Gulf Coast petroleum products imports, the company said.
The terminal also will serve as a link between Buckeye’s domestic assets and its Bahamas Oil Refining Co. International Ltd. (Borco) storage terminal in The Bahamas. Borco last year awarded a contract to CB&I build 14 storage tanks, adding roughly 3.5 million bbl to the terminal’s 21.6 million bbl capacity (OGJ Online, June 2, 2011).
The $260 million Perth Amboy acquisition increases Buckeye's total liquid petroleum storage capacity by roughly 6% to more than 68 million bbl. The terminal has undeveloped land available for potential future expansion. Chevron will continue to be a key customer at the terminal through multiyear storage and throughput commitments.