Buckeye Partners will invest $80 million to expand its Chicago Complex with more storage, blending capabilities and expansion of an existing truck rack.
The project, which is Buckeye's key logistics hub in the Midwest, is backed by a long-term agreement with BP Products North America. It will further expand storage, component blending, throughput capacity and service capabilities to support BP's growing needs.
The expansion includes an extra 600,000 barrels of additional product blending tankage as well as the build-out of an existing truck rack.
Currently, the complex serves nearly 70 different customers with 6.8 million barrels of storage capacity.
Robert Malecky, executive vice president and president of domestic pipeline and terminals, says: '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.
'This project will further enhance the liquidity of the Chicago Complex and continues to solidify our position at 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.'
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