May 3 A project to connect Buckeye Partners LP's
Perth Amboy, New Jersey, terminal to a pipeline
transportation hub in nearby Linden is about three months ahead
of schedule, Buckeye Chief Executive Clark Smith said on Friday.
A pipeline linking the two sites is expected to be completed
in April 2014, Smith said during the pipeline operator's
first-quarter 2013 earnings call. In the interim, a separate
pipeline linking Perth Amboy to Linden via Colonial Pipeline
is expected to become operational in September 2013,
Once in Linden, petroleum products transferred from Perth
Amboy can be sent to Buckeye's other Northeast delivery points,
which include New York City-area airports, Long Island, upstate
New York and western Pennsylvania, said Kevin Goodwin, Buckeye's
director of investor relations.
Buckeye bought the Perth Amboy terminal from Chevron Corp
in July 2012 for $260 million in cash. The terminal can
store more than 4 million barrels of liquid petroleum products
and is accessible by barge and pipeline. Modernization projects
are also under way to make the terminal accessible via truck and
Smith said product shippers have expressed interest in
opening the terminal to inbound crude-by-rail shipments. The
company is also in "advanced discussions with potential gasoline
blending customers that have expressed strong interest in the
facility," Smith said, citing the direct pipeline connection to
Linden as a key reason for the interest.
Buckeye expects to spend between $200 million and $235
million in 2013 on expansion projects, Smith said.