December 20, 2013 [New Jersey Press] - Buckeye Partners is in the middle of a $250 million upgrade of its Perth Amboy Terminal located on 250-acre site acquired from Chevron for for $260 million in 2012.
Last week the company finalized a $850 million purchase of 20 oil terminals from Hess, including one in the Port Reading section of Woodbridge.
Meanwhile, the company expects its new six mile, 16-inch pipeline, connecting the Perth Amboy Terminal with the Buckeye Linden Hub, to be completed by April.
The goal, President and CEO Clark C. Smith said Tuesday during a visit to this city, is to create “a world-class energy hub that will allow New Jersey to import refined products into the Northeast.”
The investment in Perth Amboy partly is a result in the increase of crude oil production in the United States, which the International Energy Agency says will become the world’s top oil producer by 2016.
Smith said greater domestic oil production means more business for struggling Northeast refineries and for midstream companies like Buckeye Products.
“It’s good for the economy up here to have these businesses modernized. I think it adds skills and the unions have been a big part of the partnership,” Clark said.
The Perth Amboy Terminal will store gasoline, jet fuel, distillates, crude oil and asphalt and be able to supply consumers by pipeline, rail, truck and water.
The pipeline will be built on existing pipeline and power line rights of way.
