Buckeye Partners LP agreed on Aug. 16 to acquire a construction-ready solar project in Texas, marking the Houston-based midstream company’s second solar acquisition in the Lone Star State within the past month.
According to a joint release, Buckeye will acquire the 270 megawatt solar project, referred to as Project Parker, located in Falls County, Texas, from OCI Solar Power LLC. Terms of the transaction weren’t disclosed.
“Buckeye’s investment in Project Parker is an example of our strategy to drive sustainable value for our customers while playing an essential role in the energy transition,” commented Buckeye President and CEO Clark Smith in the release.
Buckeye Partners, a wholly owned investment of the IFM Global Infrastructure Fund, owns and operates a diversified global network of integrated assets providing liquid petroleum product logistics solutions.
As part of a new strategy, Buckeye Partners has begun to bulk up its existing renewable energy portfolio in order to further diversify its revenue sources and position Buckeye to meaningfully participate in the energy transition. This has included acquisitions such as Buckeye Partners’ purchase of a solar development project located south of Dallas in Hill County, Texas, announced on July 29.
“As we continue to evolve into a more diversified energy company,” Smith continued in the release on Aug. 16, “acquisitions like Project Parker represent an opportunity to invest in growth that aligns with our business and ESG priorities, and leverages our existing expertise and capabilities.”
Project Parker includes two sites that are located on adjacent land in Falls County. Buckeye plans to start project design and construction later this year with the goal of bringing the project online in first-quarter 2023.
OCI Solar Power has secured site control and completed all permitting and electrical interconnection agreements for Project Parker.
Headquartered in San Antonio, OCI Solar Power develops, constructs, finances, owns and operates solar photovoltaic facilities, specializing in utility-scale and distributed generation solar projects throughout the U.S. The company is also a subsidiary of OCI Co. Ltd., a publically traded company in Korea.
In the joint release, Charles Kim, president and CEO of OCI Solar Power, said the company made the key strategic decision several years ago to develop more in Texas with an emphasis on projects that can meet the electricity demands of population centers in the eastern half of the state.
“Our strategy is now being rewarded by the market, and the sale of Project Parker to such a well-respected energy company like Buckeye further validates our approach,” Kim commented in the release.
“Now we’re eager to see Project Parker move forward into the construction phase,” he added.
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