EMMAUS, Pa. - Buckeye Partners, L.P. and NOVA Chemicals Corp. on Feb. 11 announced a joint memo of understanding regarding evaluation and development of a mixed natural gas liquids (NGL) pipeline from the Marcellus Basin in Pennsylvania to the refining and petrochemical complex in the Sarnia-Lambton area in Ontario, Canada.
The Union Pipeline Project, which is subject to final agreements and any necessary regulatory approvals, would ship mixed NGLs, principally for use as petrochemical feedstock.
The Union Pipeline Project would diversify refining and petrochemical feedstock supply for NOVA Chemicals and other potential users in the area and provide producers in the Marcellus Basin with take-away capacity for their NGLs to the closest demand center.
Initial service of Union would be from Pittsburgh, Pa., to the NOVA Chemicals Corunna olefins cracker near Sarnia, a market that has historically had limited NGL feedstock flexibility.
Due to the proximity of Sarnia to the BTU-rich natural gas production area of the Marcellus Basin, NOVA Chemicals would be able to secure long-term competitive petrochemical feedstock supply via Union.
Buckeye would develop, construct, own, and operate the Union Pipeline and would conduct an open season to solicit additional customer interest in the destination market in Sarnia prior to executing definitive agreements. The proposed project is subject to the results of an ongoing feasibility study regarding construction requirements, project economics and other matters.
Showing posts with label Buckeye Partners LP. Show all posts
Showing posts with label Buckeye Partners LP. Show all posts
Friday, February 12, 2010
Monday, March 30, 2009
Fuel leak being cleaned up at New York’s JFK Airport
NEW YORK – New York state officials are trying to clean up a serious fuel leak near a runway at JFK Airport.
They discovered the leak last fall along a pipeline that supplies the airport and the rest of the region with millions of gallons of fuel a day.
Buckeye Partners L.P. supplies jet fuel to JFK through a 40-mile pipeline system running from a storage facility in Linden, N.J., via the New York boroughs of Staten Island and Queens. The pipeline consists of two parallel 12-inch pipes buried three to four feet deep. JFK has a total fuel storage capacity of 32 million gallons. It includes 62 tanks in bulk storage as well as 50 miles of underground pipe.
It has not yet been disclosed if Buckeye lines or distribution lines owned by the airport are involved. Buckeye airport lines have leaked in the past.
On March 24, crews were at work digging test holes along the pipeline and looking for more leaked fuel. So far, about 90,000 gallons have been recovered.(Source: WABC)
They discovered the leak last fall along a pipeline that supplies the airport and the rest of the region with millions of gallons of fuel a day.
Buckeye Partners L.P. supplies jet fuel to JFK through a 40-mile pipeline system running from a storage facility in Linden, N.J., via the New York boroughs of Staten Island and Queens. The pipeline consists of two parallel 12-inch pipes buried three to four feet deep. JFK has a total fuel storage capacity of 32 million gallons. It includes 62 tanks in bulk storage as well as 50 miles of underground pipe.
It has not yet been disclosed if Buckeye lines or distribution lines owned by the airport are involved. Buckeye airport lines have leaked in the past.
On March 24, crews were at work digging test holes along the pipeline and looking for more leaked fuel. So far, about 90,000 gallons have been recovered.(Source: WABC)
Friday, March 27, 2009
Buckeye Partners units lose $2.03 per share as new offering issued
EMMAUS, Pa. - Buckeye Partners, L.P. (NYSE: BPL) on March 26 announced that it has increased its previously announced public offering of 2,350,000 limited partnership units to 2,600,000 limited partnership units and has priced the offering at $36.25 per unit.
Buckeye units closed on March 26 at $35.90 a unit, down $2.03 from the prior day and 35 cents under the unit price of the new offering, which diluted the value of units existing before the new offering.
Buckeye offered the underwriters of the offering an option to purchase up to 390,000 additional limited partnership units at a bargain price.
Buckeye intends to use the net proceeds from the offering to reduce indebtedness outstanding under its revolving credit facility.
Barclays Capital, Citi, J.P. Morgan, and Wachovia Securities acted as joint book-running managers of the limited partnership unit offering. Deutsche Bank Securities was the co-manager of the offering.
The general partner of Buckeye Partners, L.P. is owned by Buckeye GP Holdings L.P. (NYSE: BGH).
Buckeye shares were heavily traded on the day of the new offering, with 1,783,490 units changing hands.
Buckeye limited partner units are currently paying an annual dividend of $3.55 per share. At the March 26 closing price of $35.90 a share, Buckeye common units were paying a yield of 9.88 percent. With the new float, 48.8 million common units are outstanding.
Buckeye units closed on March 26 at $35.90 a unit, down $2.03 from the prior day and 35 cents under the unit price of the new offering, which diluted the value of units existing before the new offering.
Buckeye offered the underwriters of the offering an option to purchase up to 390,000 additional limited partnership units at a bargain price.
Buckeye intends to use the net proceeds from the offering to reduce indebtedness outstanding under its revolving credit facility.
Barclays Capital, Citi, J.P. Morgan, and Wachovia Securities acted as joint book-running managers of the limited partnership unit offering. Deutsche Bank Securities was the co-manager of the offering.
The general partner of Buckeye Partners, L.P. is owned by Buckeye GP Holdings L.P. (NYSE: BGH).
Buckeye shares were heavily traded on the day of the new offering, with 1,783,490 units changing hands.
Buckeye limited partner units are currently paying an annual dividend of $3.55 per share. At the March 26 closing price of $35.90 a share, Buckeye common units were paying a yield of 9.88 percent. With the new float, 48.8 million common units are outstanding.
Wednesday, March 18, 2009
Magellan, Poet considering U.S. ethanol pipeline joint venture
TULSA, Okla. - Magellan Midstream Partners said on March 16 that it has signed a joint agreement with Poet, the largest U.S. ethanol producer, to study building a dedicated pipeline to carry the biofuel from the U.S. Midwest into the Northeast.
The proposed $3.5 billion pipeline system would gather ethanol from distilleries in Iowa, South Dakota, Minnesota, Illinois, Indiana and Ohio to serve terminals in major Northeastern markets.
Amid U.S. mandates calling for greater amounts of ethanol to be blended into the gasoline pool through 2022, companies are boosting efforts to see if shipping ethanol through pipelines can be a less expensive, safer alternative to sending it on trucks and trains.
Kinder Morgan Energy Partners LP, one of the largest energy pipeline companies in North America, has been sending batches of ethanol through a 105-mile petroleum products pipeline in Florida.
Magellan, which owns and operates a major oil products pipeline in the Midwest, had originally announced in February 2008 it would work with Buckeye Partners LP to jointly study a large alternative fuel pipeline project. Buckeye recently decided to discontinue its role in that project.
Poet, which produces more than 1.5 billion gallons of ethanol a year from 26 plants across the Midwest, and Magellan said federal legislation revising the U.S. Department of Energy's loan guarantee program is critical for the project, which would span 1,700 miles, to move forward.
The proposed $3.5 billion pipeline system would gather ethanol from distilleries in Iowa, South Dakota, Minnesota, Illinois, Indiana and Ohio to serve terminals in major Northeastern markets.
Amid U.S. mandates calling for greater amounts of ethanol to be blended into the gasoline pool through 2022, companies are boosting efforts to see if shipping ethanol through pipelines can be a less expensive, safer alternative to sending it on trucks and trains.
Kinder Morgan Energy Partners LP, one of the largest energy pipeline companies in North America, has been sending batches of ethanol through a 105-mile petroleum products pipeline in Florida.
Magellan, which owns and operates a major oil products pipeline in the Midwest, had originally announced in February 2008 it would work with Buckeye Partners LP to jointly study a large alternative fuel pipeline project. Buckeye recently decided to discontinue its role in that project.
Poet, which produces more than 1.5 billion gallons of ethanol a year from 26 plants across the Midwest, and Magellan said federal legislation revising the U.S. Department of Energy's loan guarantee program is critical for the project, which would span 1,700 miles, to move forward.
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