US-based Buckeye Partners plans to invest between $350 and $400m to increase capacity at Bahamas Oil Refining Company International’s (BORCO) storage facility in Bahamas.

The company plans to add to add 7.9 million barrels of capacity at the facility.

The first phase of expansion will begin this quarter with the aim of 3.5 million barrels being brought online in the second half of 2012.

The expansion would include the installation of a new jetty which would be operated by the end of 2011.

Buckeye acquired BORCO for $1.7bn earlier this year, the facility has a current storage capacity of 21.6 million barrels, reports Reuters.