Buckeye Partners L.P. has announced that it is expanding the Chicago Complex, its key logistics hub in the Midwest, at a cost of approximately US$80 million.
This project, which is backed by a long-term agreement with BP Products North America Inc., will further expand storage, component blending, throughput capacity and service capabilities in the Chicago Complex to support the growing needs of this customer.
The expansion includes the construction of approximately 600 000 bbls of additional product blending tankage, as well as the build-out of an existing truck rack.
“This is a meaningful win for Buckeye and demonstrates the value in the position and flexibility of our assets to enable a broad range of both operational and trading capabilities,” said Robert A. Malecky, Executive Vice President and President of Domestic Pipeline and Terminals. “The Chicago Complex currently serves nearly 70 different customers with approximately 6.8 million bbls of storage capacity. The Complex is widely recognised as the most flexible storage facility in the Chicago market, with connectivity to multiple pipelines and refineries from across the region and rail capability for a range of different products.
“This project will further enhance the liquidity of the Chicago Complex and continues to solidify our position as the premier storage and trading facility in the Chicago area. We believe the Midwestern refining industry is materially cost-advantaged to certain of its competitors in other parts of the country and poised for continued growth and investment. Our teams expect this expansion to be the first phase of additional growth because of these dynamics and will continue to work with other customers with similar interest.”
Read the article online at: https://www.tanksterminals.com/storage-tanks/06042018/buckeye-to-expand-chicago-complex/