Infrastructure / Gulf Coast / Shale Daily / Permian Basin / NGI All News Access

Buckeye Mulling Crude Pipeline, Other Projects Targeting Permian Production

Buckeye Partners LP is planning a binding open season for a new crude oil pipeline from the Permian Basin to Corpus Christi, TX, that would meet growing demand for crude takeaway capacity from the booming region.

The proposed system, to be named South Texas Gateway, would deliver crude oil and condensate from origination points in Wink and Midland, TX, to the existing Buckeye Texas Partners LLC (BTP) refining and export facilities in Corpus Christi. The pipeline is expected to be 24 inches in diameter with a total capacity of up to 400,000 b/d with multiple segregations.

“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,” said Buckeye CEO Clark C. Smith.

South Texas Gateway is part of a series of potential projects Buckeye is pursuing in order to enhance Permian Basin crude oil flows. These include construction of a crude oil distribution system in Corpus Christi that would provide local refineries with access to new supply and expansion of storage and marine terminalling assets along the Corpus Christi Ship Channel.

Buckeye also is developing projects to expand its capabilities and create new connectivity throughout the Corpus Christi market.

The company is 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.

It is also adding a fifth deepwater dock at the BTP facilities, capable of high-rate loading Suezmax-sized vessels, which would complement existing export and import capabilities. And it is expanding storage capabilities at the BTP Corpus Christi facilities to provide dedicated storage to shippers on South Texas Gateway and to BTP terminal customers.

Besides South Texas Gateway, another long-haul pipeline to serve Permian producers and processors with natural gas liquids takeaway capacity to BTP’s export facilities in Corpus Christi also is being considered.

Buckeye plans to hold a binding open season for the South Texas Gateway pipeline during the third quarter with the expectation that the pipeline will be in service in 2019. For open season information information contact Robert Harris, rharris@buckeye.com, or Justin Brymer, jbrymer@buckeye.com.

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