Buckeye Partners Planning New Permian-to-Corpus Christi Pipeline

Buckeye Partners L.P., April 5, 2017

Buckeye Partners, L.P. (“Buckeye”) recently 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 and an expansion of its existing storage and marine terminalling assets along the Corpus Christi Ship Channel.

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 new pipeline system, to be named South Texas Gateway, would deliver crude oil and condensate from origination points in Wink and Midland, Texas to the existing Buckeye Texas Partners LLC (“BTP”) refining and export facilities in Corpus Christi. The pipeline is currently expected 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.
  • Adding a fifth deep-water dock at the BTP facilities, capable of high-rate loading Suezmax-sized vessels, which would complement existing export and import capabilities.
  • Expanding the storage capabilities at BTP’s Corpus Christi facilities to provide dedicated storage to shippers on South Texas Gateway and to BTP terminal customers.
  • Evaluating, in addition to the South Texas Gateway project, a similar long-haul pipeline offering Permian Basin producers and processors a comprehensive system solution for natural gas liquid (NGL) takeaway to BTP’s existing export facilities in Corpus Christi. Buckeye currently plans to hold a binding open season for the South Texas Gateway pipeline during the third quarter of 2017 with the expectation that the pipeline will be in service in 2019.


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