Buckeye Partners, L.P. has announced today that it has reached a multi-year agreement with a subsidiary of
Irving Oil Limited to provide crude oil services at its terminal located in
Albany,
New York, including off-loading unit-trains, storage, and throughput.
The approximately 1.8 million barrel storage facility located within the Port of Albany, along the Hudson River, is expected to begin handling crude oil on November 1, 2012. Buckeye plans to make modifications to the Albany terminal that, once completed, will allow the facility to handle both crude oil and ethanol unit-trains with a total capacity in excess of 135,000 barrels per day.
“Rail transport has become a critical component of the logistics chain as domestic crude oil production has increased significantly,” said
Clark C. Smith [pictured], Buckeye’s president and chief executive officer. "The addition of crude oil services at our Albany terminal is part of our strategy to increase and improve the utilization of our existing assets. We are excited to continue to develop these kinds of opportunities with a strategic partner such as Irving Oil."
Buckeye owns and operates one of the largest independent liquid petroleum products pipeline systems in the United States in terms of volumes delivered, with over 6,000 miles of pipeline.
Buckeye also owns approximately 100 liquid petroleum products terminals with aggregate storage capacity of approximately 69 million barrels, operates and/or maintains approximately 2,800 miles of pipeline under agreements with major oil and chemical companies, owns a high-performance natural gas storage facility in Northern California, and markets liquid petroleum products in certain regions served by its pipeline and terminal operations.
Buckeye’s flagship
BORCO marine terminal in
The Bahamas, is one of the largest crude oil and petroleum products storage facilities in the world, serving the international markets as a premier global logistics hub.
Image: Clark C. Smith, Buckeye’s president and chief executive officer.