Buckeye Partners LP and Trafigura Trading LLC received the first shipment of crude oil from the Permian Basin delivered via Plains All American Pipeline LP's Cactus II pipeline to the Buckeye Texas Partners LLC terminal in Corpus Christi, Texas.

The initial crude delivery represents the first from over 3 million barrels per day of new pipeline capacity planned in Corpus Christi to ease takeaway constraints out of the Permian, according to an Aug. 12 news release. When Cactus II becomes fully operational, Buckeye and Trafigura will complete more direct connections and interconnectivity at the Buckeye Texas Partners terminal.

As part of their efforts to build their positions as exporters of crude and refined products, Trafigura has a long-term contract for crude deliveries from the Permian Basin via Cactus II, while Buckeye is completing the first phase of development across its South Texas facilities.

Plains' Cactus II pipeline is designed to carry 585,000 bbl/d from the Permian to the Corpus Christi area. The company's CEO and director Wilfred Chiang earlier said the pipeline is "mechanically complete" and full operations are expected to begin in the first quarter of 2020.