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Buckeye Partners, L.P. has completed its purchase of a marine terminal facility for liquid petroleum products in New York Harbor from Chevron U.S.A. Inc. for $260 million in cash.

The facility sits on approximately 250 acres in Perth Amboy, New Jersey and is located only six miles from Buckeye’s Linden, New Jersey complex. It features over four million barrels of storage, four docks on the Arthur Kill, and pipeline, rail, and truck access.

The acquisition increases Buckeye’s total liquid petroleum storage capacity by approximately six percent to over 68 million barrels. In addition, the facility has significant undeveloped land available for potential future expansion.

Chevron will continue to be a key customer at the terminal under multi-year storage and throughput commitments, Buckeye said.

“We are excited to bring this strategic facility into Buckeye’s portfolio of assets. We expect its integration into our network to proceed quickly and smoothly, and we intend to initiate our planned commercialization activities immediately,” commented Clark C. Smith, Buckeye’s president and chief executive officer.

“The Perth Amboy terminal should provide Buckeye with security and diversity of product supply by directly linking our domestic pipeline and terminal network to an owned and operated marine facility through a new 16-inch pipeline to be built to our Linden complex. This will provide Buckeye with direct access to international and U.S. Gulf Coast petroleum products imports. The facility also can serve as a link between our domestic assets and our BORCO facility in The Bahamas. We believe that its multi-modal connectivity, combined with our planned modernization activities, will strengthen our ability to provide customers with flexible logistics services, as well as to satisfy market demand for the handling and upgrading of multiple commodities, including crude oil and refined products," added Smith.