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Dock and Rail at Corpus Christi. Image courtesy of Trafigura.

Houston-based Buckeye Partners bought an 80 percent stake in a midstream joint venture that will own and operate vertically integrated midstream assets in Corpus Christi, Texas for $860 million Tuesday.

Buckeye will partner with Switzerland-based midstream Trafigura to form Buckeye Texas Partners.

Buckeye Texas will own and operate a vertically integrated system of midstream assets including a deepwater, 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 at the Eagle Ford shale formation.

The 50,000 barrel per day condensate splitter is currently under construction and is expected to be completed by the middle of 2015.

The Corpus Christi facilities have five vessel berths including three deepwater docks.

After the initial development phase is completed, the project will offer approximately 5.6 million barrels of liquid petroleum products storage capacity along with rail and truck loading and unloading capability.

All of the assets are supported by 7 to 10 year minimum volume throughput, storage and tolling agreements with Trafigura.

Buckeye Texas Partners will invest approximately $240 to $270 million in the project through the first quarter of 2016.

Buckeye CEO Clark C. Smith said the deal will allow the company to acquire and further develop a midstream platform in the Gulf Coast with long term committed revenue and “significant potential for further growth.”

The deal is also expected to help Buckeye capitalize on growing production in the Eagle Ford shale formation.

The deal is expected to close in late September pending regulatory approvals.