BORCO has also initiated its expansion plans

Recent acquisitions in the U.S. are expected to “connect the dots” and complete Buckeye’sstorage and distribution network in The Bahamas. In fact, Buckeye spent $73.3 million in capital expenditures in the first quarter on the Grand Bahama facility,up from $39 million during the same period.

“BORCO will receive a major expansion and refurbishment to its storage tank capacity as well as further initiatives to improve efficiencies and reduce costs”. Earlier this year, Guardian Business revelead Buckeye’s master plan to pour up to $400 million into the BORCO facility to boost capacity. 

The NYSE-listed company is expected to provide 7.9 million barrels of additional storage capacity at the facility in the near term. 

The Grand Bahama facility now includes more than 80 tanks, providing 21.4 million barrels of crude oil,fuel oil, and refined petroleum product storage. While the current expansion calls for the addition of 7.9 million barrels of capacity, there is “room to ultimately double the existing storage capacity”, a report notes.

Essential to the long-term success of BORCO is the pending acquisition of the Perth Amboy terminal in New York Harbor from Chevron USA Inc. for $260 million. Buckeye signed the agreement un February 2012, with the final transaction expected to occur in thesecond or third quarter of this year.

In February, Buckeye paid a deposit of $14 million to Chevron.

“The Perth Amboy Facility will provide a link between our inland pipelines and terminals and our BORCO facility in The Bahamas, imporving service offeringsfor our customers and providing further support to our planned clean products tankage expansion at the BORCO facility,” the report added.

The company is looking to capitalize on the shutdown of the Hovensa oil refinery, in St. Croix, U.S. Virgin.