By OGJ editors
HOUSTON, Oct. 5 -- Buckeye Pipe Line Co. LLC , the general partner of Buckeye Partners LP, Emmaus, Pa., closed on the purchase of five product pipelines and 24 terminals in the US Midwest from Shell Oil Products US for $517 million.
A previously announced price of $530 million was reduced by $13 million to account for the elimination of a Niles, Mich., terminal from the transaction. The US Federal Trade Commission requested exclusion of the Niles terminal, saying that Buckeye would have had too much market share if that terminal were kept in the deal.
In a separate closing, Magellan Midstream Partners LP, Tulsa, finalized its purchase of more than 2,000 miles of product pipeline and storage assets—four systems total—in Texas, Oklahoma, Kansas, and Colorado for about $490 million, from Shell Oil Products (OGJ Online, June 28, 2004).
Buckeye said the Shell Oil pipeline systems and terminals expand its presence in the Midwest. The acquired pipelines include:
--North Line system, a 309-mile pipeline originating at the ConocoPhillips Wood River, Illinois refinery and delivering products to Illinois and Indiana.
--East Line system, a 354-mile pipeline, also originating at the Wood River refinery, that delivers products across Illinois and Indiana and connects with Buckeye's pipeline in Lima, Ohio.
--Two Rivers Pipeline system, a 191-mile pipeline receiving product from Explorer pipeline at a tank farm in Hartford, Ill., and terminating at a Mt. Vernon, Ind., terminal.
Buckeye also acquired that terminal from Shell.
--St. Louis 6-in. pipeline and the ATF pipeline, originating at the Wood River refinery and terminating at a St. Louis-area terminal and at the Lambert-St. Louis Airport, respectively.
