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Is This the Right Time for Buckeye Partners?

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Part 6
Is This the Right Time for Buckeye Partners? PART 6 OF 11

What Are Buckeye Partners’ Current Expansion Plans?

Buckeye Partners’ recent expansion plans

Buckeye Partners’ (BPL) distributable cash flow growth is dependent on new expansion opportunities and the successful completion of its ongoing expansion projects. Let’s focus now on the partnership’s current expansion opportunities.

What Are Buckeye Partners’ Current Expansion Plans?

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South Texas gateway projects

BPL recently announced its plans to enter the prolific Permian Basin. It plans to build a 600-mile haul pipeline from Wink, Midland, and Crane Counties in the Permian Basin to Buckeye Texas Partners (or BTP) refining and export facilities in Corpus Christi, Texas. The proposed pipeline is expected to carry 400,000 barrels per day of crude oil. In addition, the proposed project includes the following:

  • construction of crude oil pipeline header system in Corpus Christi
  • addition of a fifth deep-water dock at the BTP facilities
  • expansion of storage capabilities at the BTP facilities

BPL, like other MLPs, is bullish on expansion in the prolific Permian Basin. The partnership is also exploring opportunities to move NGL (natural gas liquids) volumes from the Permian Basin to the BTP export facilities. NuStar Energy (NS), Western Gas Partners (WES), Energy Transfer Partners (ETP), and EnLink Midstream Partners (ENLK) are among the midstream MLPs that are bullish on Permian expansion.

Michigan/Ohio Expansion

BPL recently placed phase one of the Michigan/Ohio Expansion into service. Phase two of the project, which proposes to move “refined product barrels from Midwestern refineries to Pittsburgh and Central Pennsylvania destinations,” is expected to come online in late 2018.

According to a recent BPL investor presentation, it has more than $3.0 billion of future pipeline projects under assessment.

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