Buckeye Partners is to expand its key logistics hub in the Midwest. The $80m project, backed by a long-term agreement with BP Products North America, will see its Chicago Complex expand its storage, component blending, throughput capacity and service capabilities. The expansion includes the construction of approximately 600,000 barrels of additional product blending tankage as well as the build-out of an existing truck rack.
“This is a meaningful win for Buckeye and demonstrates the value in the position and flexibility of our assets to enable a broad range of both operational and trading capabilities,” said Robert Malecky, Executive Vice President and President of Domestic Pipeline and Terminals.
“The Chicago Complex currently serves nearly 70 different customers with approximately 6.8 million barrels of storage capacity. The Complex is widely recognised as the most flexible storage facility in the Chicago market, with connectivity to multiple pipelines and refineries from across the region and rail capability for a range of different products. This project will further enhance the liquidity of the Chicago Complex and continues to solidify our position as the premier storage and trading facility in the Chicago area. We believe the Midwestern refining industry is materially cost-advantaged to certain of its competitors in other parts of the country and poised for continued growth and investment. Our teams expect this expansion to be the first phase of additional growth because of these dynamics and will continue to work with other customers with similar interest.”
For more information, visit: www.buckeye.com
9th Apr 2018