NEW YORK May 6 Buckeye Partners, L.P. (BPL.N) will spend between $350 and $400 million to add 7.9 million barrels of capacity at its BORCO storage facility in the Bahamas, the company said in a conference call on Friday.
Storage will come online incrementally, with the first phase starting this quarter with the aim of 3.5 million barrels being brought online in the second half of 2012, the company said.
Earlier this year, Buckeye paid $1.7 billion in cash and equity to buy the Bahamas Oil Refining Company International Limited (BORCO) which currently has 21.6 million barrels of storage capacity.
The expansion will include the installation of a new jetty which will be operational by the end of 2011, giving the facility a total of six offshore berths.
Borco is the largest storage terminal facility in the Caribbean, with the ability to store, blend, transship, and bunker fuel oil, crude oil and various petroleum products.
BORCO's facilities are located off the southern tip of the Grand Bahama Island. It is easily accessible for crudes and products coming from the Middle East, Europe and West Africa Arabian Gulf, Northwest Europe and West Africa as well as the U.S. Gulf Coast, Latin America and the Pacific. (Reporting by Janet McGurty; Editing by David Gregorio)