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Buckeye Partners, P66 Partners and Andeavor Form JV to Construct South Texas Marine Terminal

Buckeye Partners L.P., April 25, 2018

Buckeye Partners, L.P. (“Buckeye”), has formed a joint venture with Phillips 66 Partners LP (“Phillips 66 Partners”) and Andeavor to develop a new deep-water, open access marine terminal in Ingleside, Texas. The South Texas Gateway Terminal will be constructed on a 212 acre waterfront parcel at the mouth of Corpus Christi Bay. The facility is positioned to serve as the primary outlet for crude oil and condensate volumes delivered off of the planned Gray Oak pipeline from the Permian Basin. The terminal, to be constructed and operated by Buckeye, will offer 3.4 million barrels of crude oil storage capacity, connectivity to the Gray Oak pipeline and two deep-water vessel docks capable of berthing Very Large Crude Carrier (“VLCC”) petroleum tankers as part of the initial scope of construction. The facility can ultimately be expanded to include over 10 million barrels of storage capacity as well as multiple additional docks and other inbound pipeline connections. The initial construction of the terminal is supported by long-term minimum volume throughput commitments from credit-worthy customers, including Phillips 66 and Andeavor, and is scheduled to commence initial operations by the end of 2019. Buckeye will own a 50% interest in the newly formed joint venture and Phillips 66 Partners and Andeavor will each own a 25% interest.

The South Texas Gateway Terminal will serve as a premier open-access deep-water marine terminal in the Port of Corpus Christi,” said Khalid Muslih, Executive Vice President of Buckeye and President of Buckeye’s Global Marine Terminals business unit. “The terminal will provide customers with logistics solutions that connect the region’s rapidly growing crude oil production with advantaged access to global markets. Buckeye is extremely pleased to be partnering with two other leading integrated energy firms in Phillips 66 Partners and Andeavor and believes this partnership offers tremendous opportunity for future development and growth of the South Texas Gateway Terminal.

This project expands our presence in the important Corpus Christi market, which we believe offers strong competitive advantages for waterborne shipments of crude oil and other petroleum products from the fast growing Permian and Eagle Ford shale plays. Recently announced improvements to our existing flagship Buckeye Texas Partners terminal, which sits along the ship channel in the Port of Corpus Christi, have expanded its leading marine terminalling capabilities. This combined marine terminal presence in Corpus Christi will provide our customers with advantaged last mile solutions, including unmatched connectivity to two recently announced Permian Basin pipeline expansions. We believe that these assets represent a competitive advantage for Buckeye and position us at the forefront of the fast-growing U.S. crude oil export movement,” said Mr. Muslih.

About Buckeye Partners, L.P.

Buckeye Partners, L.P. (NYSE: BPL) is a publicly traded master limited partnership which owns and operates, or owns a significant interest in, a diversified global network of integrated assets providing midstream logistic solutions, primarily consisting of the transportation, storage, processing and marketing of liquid petroleum products. Buckeye is one of the largest independent liquid petroleum products pipeline operators in the United States in terms of volumes delivered, with approximately 6,000 miles of pipeline. Buckeye also uses its service expertise to operate and/or maintain third-party pipelines and perform certain engineering and construction services for its customers. Buckeye’s global terminal network, including through its interest in VTTI B.V. (“VTTI”), comprises more than 135 liquid petroleum products terminals with aggregate tank capacity of over 176 million barrels across our portfolio of pipelines, inland terminals and marine terminals located primarily in the East Coast, Midwest and Gulf Coast regions of the United States as well as in the Caribbean, Northwest Europe, the Middle East and Southeast Asia. Buckeye’s global network of marine terminals enables it to facilitate global flows of crude oil and refined petroleum products, offering its customers connectivity between supply areas and market centers through some of the world’s most important bulk liquid storage and blending hubs. Buckeye’s flagship marine terminal in The Bahamas, Buckeye Bahamas Hub, is one of the largest marine crude oil and refined petroleum products storage facilities in the world and provides an array of logistics and blending services for the global flow of petroleum products. Buckeye’s Gulf Coast regional hub, Buckeye Texas Partners, offers world-class marine terminalling, storage and processing capabilities. Through its 50% equity interest in VTTI, Buckeye’s global terminal network offers premier storage and marine terminalling services for petroleum product logistics in key international energy hubs. Buckeye is also a wholesale distributor of refined petroleum products in certain areas served by its pipelines and terminals. More information concerning Buckeye can be found at www.buckeye.com.


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