Buckeye Partners LP has signed an agreement to acquire a refined petroleum products terminal on the southeast coast of Puerto Rico from an affiliate of Royal Dutch Shell plc. The terminal in Yabucoa, Puerto Rico, includes 44 storage tanks with approximately 4.6 million barrels of gasoline, jet fuel, diesel, fuel oil, and crude storage capacity. The acquisition, which is subject to customary closing conditions, is expected to close in December 2010.
“This acquisition provides Buckeye with a well-maintained facility that serves a strong local market and offers a regional value proposition,” said Forrest E Wylie, chairman and chief executive officer of Buckeye’s general partner. “Our investment will provide Buckeye with long-term fee-based revenues supported by multi-year commitments from Shell, and is expected to immediately increase distributable cash flow to our unitholders.”
“In addition to building upon the facility’s superior blending/manufacturing capabilities and strategic location, we will look to further optimize the terminal through the implementation of Buckeye’s best practices model,” said Clark C Smith, president and chief operating officer of Buckeye’s general partner. “Furthermore, by enabling us to capitalize on future regional and international growth opportunities, this investment is a key step in Buckeye’s expansion and diversification efforts.”