Gibson Energy to Buy Buckeye Partners' South Texas Gateway Oil Terminal
06.15.2023 By News - NEWS

June 15, 2023 [Reuters]- Gibson Energy said on Wednesday it will buy South Texas Gateway oil terminal from Buckeye Partners and its partners for $1.1 billion as the Canadian energy infrastructure firm looks to expand into U.S. crude oil export markets.


U.S. oil exports have boomed in recent years, touching a record of about 4.5 million barrels per day in March, on rising shale output, while Russia’s invasion of Ukraine boosted demand for U.S. oil.

South Texas Gateway, located in Ingleside, Texas, at the mouth of the Corpus Christi ship channel, is the second largest oil exports facility in the United States with total capacity of 8.6 million barrels across 20 tanks.

“As U.S. crude oil exports grow, driven by production growth from the low-cost, resource-rich Permian basin, Gibson anticipates the potential for future expansions at the terminal,” the Calgary, Alberta, company said in a statement.

Buckeye did not reply to a request for comment.

In March, the terminal exported a record 670,000 barrels per day, and year to date has handled 12% of U.S. crude exports, Gibson said.

The facility is 50% owned and operated by privately held Buckeye Partners. Phillips 66 (PSX.N) and Marathon Petroleum Corp (MPC.N) each have 25% stakes.

The company will finance the deal through a C$350 million ($262.72 million) equity offering and other debt offerings.

J.P. Morgan Securities Canada is acting as exclusive financial advisor to the deal, which is set to close in the third quarter of 2023. Latham and Watkins LLP and Bennett Jones were legal advisors on the transaction.

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

ExxonMobil Expands Chemical Production at Baytown
09.21.2023 - NEWS
September 21, 2023 [ExxonMobil]- ExxonMobil today announced the startup of two new chemical produ... Read More
Belvedere Terminals Ups its Planned Investment to $750 Million in Florida
09.21.2023 - NEWS
September 21, 2023 [Observer]-Belvedere Terminals announced Tuesday that it plans to build a tota... Read More
Oil Must Play Major Role in Global Energy Transition, Exxon, Aramco CEOs Say
09.21.2023 - NEWS
September 21, 2023 [Oil & Gas 360]- The heads of Saudi Aramco and Exxon Mobil Corp. took to t... Read More
JERA Global Markets Sells Terminal in the Port of Amsterdam to Rhenus Group
09.21.2023 - NEWS
September 21, 2023 [Port News]- JERA Global Markets Pte. Ltd. and the Rhenus Group jointly announ... Read More