Buckeye Partners Closes Deal for Eagle Ford Assets

Closing Price: $860-Million
Trafigura Terminals Eagle Ford Port in Corpus Christi

Trafigura Terminals’ Eagle Ford Port in Corpus Christi | Click to Enlarge

Buckeye Partners, L.P. has closed its $860-million transaction with Trafigura AG’s South Texas Eagle Ford midstream assets.

The transaction creates a new joint venture – Buckeye Texas Partners. The new company will own and operate the divested Trafigura assets, but Trafigura will retain a 20% interest and have joint ownership of the new company. Both companies announced the acquisition and divestiture agreement earlier this month.

Read more: Buckeye Buys Eagle Ford Facilities – $860 Million

Buckeye Texas Partners will invest appoximately $240-million – $270-million on improvements to the system, increasing its liquid petroleum products storage capacity to 5.6-million barrels. A 50,000 barrel per day condensate splitter is currently under construction and is anticipated to be completed by mid-2015.

Buckeye Partners CEO Clark Smith, said in a prepared statement, “once the initial phase of expansion is complete, these assets will form an integrated system with connectivity from the production in the field to the marine terminal infrastructure in Corpus Christi, creating a logistics platform with significant flexibility and optionality.”

Read more at buckeye.com

Buckeye Buys Eagle Ford Facilities – $860 Million

$240 - $270 Million Slate for Improvements Through 2016
Trafigura Eagle Ford Assets

Trafigura Eagle Ford Assets

Buckeye Partners, L.P. announced this week it will acquire an 80% interest in Trafigura AG’s South Texas Eagle Ford midstream assets for $860-million. The deal creates a new joint venture, whereby Trafigura will retain a 20% interest in its assets and jointly own the new company, Buckeye Texas Partners, that will own and operate the assets divested by Trafigura.

In the deal, Buckeye gains a deep-water, high volume marine terminal located on the Corpus Christi Ship Channel, a condensate splitter and LPG storage complex in Corpus Christi, and three crude oil and condensate gathering facilities in the Eagle Ford shale. All of the assets are supported by 7- to 10-year minimum volume throughput, storage and tolling agreements with Trafigura.

Buckeye CEO Clark Smith, said, “we are excited about the opportunity to partner with Trafigura and to position ourselves with them in the rapidly growing Corpus Christi and Eagle Ford markets,” stated Mr. Smith. “We believe this strategic partnership will provide significant opportunities for additional infrastructure expansion to support further expected growth in these markets.”

Buckeye Texas Partners will invest appoximately $240-million – $270-million on improvements to the system, increasing its liquid petroleum products storage capacity to 5.6-million barrels. A 50,000 barrel per day condensate splitter is currently under construction and is anticipated to be completed by mid-2015.

Read more at buckeye.com

Magellan Midstream Partners Will Spend $250 Million on Condensate Splitter

Eagle Ford Condensate Production Was 207,183 b/d in 2013
Magellan Corpus Christi Terminal

Magellan Corpus Christi Terminal | Click to Enlarge

Magellan Midstream Partners announced in late March plans to build a condensate splitter and make infrastructure improvements to its’ Corpus Christi terminal for $250 million. According to company officials, the splitter will be able to process 50,000 b/d of condensate, supported by a long-term commitment from commodities trader Trafigura AG.

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