By OGJ editors
HOUSTON, Mar. 21 -- Buckeye Partners LP agreed to acquire 33 refined products terminals and 1,000 miles of pipelines in the US from BP Products North America Inc. and its affiliates for $225 million. The transaction includes BP's 50% interest in Inland Corp., a pipeline joint venture in Ohio.
Closing, subject to regulatory approvals and other conditions, is expected in the second quarter. Buckeye's proposed acquisition of BP's interest in Inland, which represents $60 million of the total price, is subject to Inland's other shareholders' existing rights of first refusal. Other stakeholders are Shell Oil Co., Sun Pipeline Co., and Midwest Pipeline Holding LLC.
Regarding the total transaction, Buckeye said the 33 terminals that it’s buying have total storage capacity exceeding 10 million bbl. The terminal and pipelines are in the US Midwest, Southeast, and West.
Buckeye Partners is a publicly traded partnership that owns and operates an independent refined petroleum products pipeline system. It own 5,400 miles of pipeline and owns 69 liquid petroleum products terminals with aggregate storage capacity of 53 million bbl. In addition, Buckeye operates 2,600 miles of pipeline for major oil and chemical companies.
BP is selling assets to help pay for the Gulf of Mexico oil spill, which resulted from the Macondo well blowout in 5,000 ft of water off Louisiana in April 2010. An explosion and fire on Transocean Ltd.’s Deepwater Horizon killed 11 crew members.