Buckeye Texas Partners LLC and its subsidiaries, which are owned jointly with Trafigura AG, will own and operate a vertically integrated system of midstream assets including a deep-water, high-volume marine terminal located on the Corpus Christi Ship Channel, a condensate splitter and LPG storage complex in Corpus Christi and three crude oil and condensate gathering facilities in the Eagle Ford shale.

Trafigura will be a key customer of these assets under seven-to-10-year minimum volume throughput, storage and tolling agreements.

Once the initial phase of expansion is complete, these assets will form an integrated system with connectivity from the production in the field to the marine terminal infrastructure in Corpus Christi, creating a logistics platform
with significant flexibility and optionality.

In addition, 100% of the cash flows associated with these assets are supported by fee-based take-or-pay revenue commitments under seven-to-10-year commercial agreements with Trafigura.

Buckeye expects this acquisition to be highly accretive to its distributable cash flow per limited partner unit beginning in 2016 and to position Buckeye for acceleration of distribution growth.

OPIS notes that this deal will expand Buckeye’s presence to the Gulf Coast. Prior to this deal, Buckeye’s assets are predominantly located in the Midwest and Northeast.

According to Buckeye’s website, the company’s terminaling and pipeline assets are concentrated in the Northeast and Midwest. It has some contract pipeline operations in Texas and Louisiana.