Buckeye Partners LP (NYSE: BPL) agreed to acquire 80% of Trafigura AG’s membership interests in Eagle Ford midstream assets in South Texas for $860 million, the Houston-based companies announced Sept. 2.

Trafigura will maintain a 20% interest and will keep commercial rights to use all of the assets. Assets include:

  • Texas Dock & Rail, a deepwater, high volume marine terminal on the Corpus Christi Ship Channel;
  • EF90, a condensate splitter and LPG storage complex; and
  • Trafigura Field Services, crude gathering facilities serving the Eagle Ford Shale.

Citigroup was exclusive financial advisor to Trafigura for the transaction. Barclays provided a fairness opinion to the board of directors of Buckeye GP LLC, the general partner of Buckeye.

Buckeye also announced the commencement of a public offering of 5.5 million limited partnership units. It plans to grant the underwriters an option to purchase up to 825,000 additional units. Net proceeds will be used to fund a portion of the transaction with Trafigura and for general partnership purposes.