Buckeye Partners, L.P. today announced that it is preparing for a binding open season in connection with the development of a new crude oil pipeline from the Permian Basin to Corpus Christi, Texas. The pipeline is part of a series of potential investment projects Buckeye is pursuing in order to significantly enhance Permian Basin crude oil flows, including the construction of a crude oil distribution system in Corpus Christi to provide local refineries with access to new sources of supply.
“We are excited to announce these projects in response to strong interest from potential customers,” said Clark C. Smith, Buckeye’s Chairman, President and Chief Executive Officer. “The Permian Basin is one of the most prolific oil producing areas in the world and is a natural point of connectivity to enhance our existing assets in South Texas. These assets, in turn, make Buckeye uniquely positioned to help customers maximize the value of their product.”
The proposed pipeline system, South Texas Gateway, would deliver crude oil and condensate from origination points in Wink and Midland, Texas to the existing Buckeye Texas Partners LLC refining and export facilities in Corpus Christi. The pipeline is projected to be 24 inches in diameter with a total capacity of up to 400,000 barrels per day with multiple segregations.
In conjunction with the announcement of the South Texas Gateway project, Buckeye announced that it also is developing projects to expand its existing capabilities and create new connectivity throughout the Corpus Christi market. Those development projects consist of:
- Building a distribution system, to be named Buckeye Texas Market Center, which would enable crude oil deliveries from new and existing pipelines originating in the Eagle Ford Shale and the Permian Basin to refining and processing markets in Corpus Christi, enhancing overall market liquidity.
- Evaluating a similar long-haul pipeline offering Permian Basin producers and processors a comprehensive system solution for NGL takeaway to BTP’s existing export facilities in Corpus Christi.
Buckeye currently intends to hold a binding open season for the South Texas Gateway pipeline during the third quarter of 2017 with an expected in service date of 2019.