Buckeye Partners, L.P. has closed its $860-million transaction with Trafigura AG's South Texas Eagle Ford midstream assets.

The transaction creates a new joint venture - Buckeye Texas Partners. The new company will own and operate the divested Trafigura assets, but Trafigura will retain a 20% interest and have joint ownership of the new company. Both companies announced the acquisition and divestiture agreement earlier this month.

Read more: Buckeye Buys Eagle Ford Facilities - $860 Million

Buckeye Texas Partners will invest appoximately $240-million – $270-million on improvements to the system, increasing its liquid petroleum products storage capacity to 5.6-million barrels. A 50,000 barrel per day condensate splitter is currently under construction and is anticipated to be completed by mid-2015.

Read more at buckeye.com