Buckeye Partners Wraps Up Laurel Pipeline, Turns to Crude, Refined Terminal Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Buckeye Partners LP (NYSE:BPL) (Houston, Texas) was granted permission to begin bidirectional flows on its Laurel refined-product pipeline earlier this week, after the Pennsylvania Public Utility Commission (PUC) unanimously approved a settlement agreement between Buckeye and a group opposed to the two-way service. With the multi-phase Laurel project on the verge of completion, Buckeye is turning its attention to a slew of crude-oil and refined-product terminal projects in Texas, Ohio and Pennsylvania. Industrial Info is tracking nearly $900 million in active projects involving Buckeye.

Click on the image at right to see a graph detailing Buckeye's active projects across the U.S., by industry sector.

The 350-mile Laurel Pipeline has long been used to ship refined products from the Philadelphia area's refineries westward through Pennsylvania, but Buckeye aims to sell some of its capacity to fuel producers in Ohio, Illinois and Michigan. Many Pennsylvania-based producers were concerned this would erode their market share. Under the PUC-approved deal, Buckeye can sell some of the pipeline's capacity to Midwestern producers for access as far east as Altoona, a city just west of central Pennsylvania.

Industrial Info is tracking all major phases of the Laurel Pipeline conversion, including:

• the estimated $100 million Pennsylvania portion of the bidirectional conversion; see project report
• the estimated $100 million Ohio portion of the bidirectional conversion; see project report
• the estimated $40 million pump station in Greensburg, Pennsylvania; see project report
• the estimated $30 million pump station in Coraopolis, Pennsylvania; see project report
• the estimated $30 million pump station in Toledo, Ohio; see project report
• the estimated $30 million pump station in Wakeman, Ohio; see project report

As part of the PUC settlement, Buckeye must observe a five-year moratorium on further extensions of bi-directional service on the Laurel Pipeline, and a seven-year moratorium on a full flow reversal for any points east of Pittsburgh, which sits on the western border of Pennsylvania, according to the Pittsburgh Tribune-Review. The Federal Energy Regulatory Commission (FERC) has not yet ruled on the proposed deal, but Buckeye can begin west-to-east service regardless.

One of Buckeye's largest terminal projects is set to begin construction before the end of the year: the estimated $481 million South Texas Gateway (STG) Terminal in Ingleside, Texas, a joint venture among Marathon Oil Corporation (NYSE:MRO) (Houston), Phillips 66 (NYSE:PSX) (Houston) and Buckeye. The facility will feature a pair of deepwater vessel docks for loading and unloading very large crude carrier (VLCC) petroleum tankers. STG's tank capacity is expected to total between 6.5 million and 7 million barrels, with an estimated export capacity of 800,000 barrels per day (BBL/d). For more information, see Industrial Info's project report.

Buckeye also plans to begin $30 million worth of inspection and upgrades to crude-oil, refined-product and other terminals across the U.S. through the end of next year. These include a gasoline, diesel, ethanol and jet fuel terminal in Coraopolis and a refined products terminal in Brewerton, New York, both of which are expected to kick off next spring and wrap up toward the end of 2020. For more information, see Industrial Info's reports on the Coraopolis and Brewerton projects.

Buckeye terminals that are expected to finish inspection and upgrades before the end of 2019 include the refined products terminal in Napoleon, Michigan. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.