By the OGJ Online Staff
HOUSTON, Oct. 22 -- Buckeye Pipe Line Co., the general partner of Buckeye Partners LP, Radnor, Pa., agreed to purchase an 18.52% stake in West Shore Pipeline Line Co. from TransMontaigne Pipeline Inc. for $23.1 million.
Buckeye's purchase of 6,805 shares is expected to close before the end of the month.
West Shore owns a refined petroleum product line from Chicago to Green Bay, Wis., then to Madison, Wis. The line is operated under contract by Citgo Pipeline Co.
William H. Shea Jr., president and CEO of Buckeye, said, "We are pleased to become the largest stockholder of West Shore Pipe Line Co. West Shore serves growing petroleum product demand in the greater Chicago and eastern Wisconsin markets. Our investment in West Shore will complement our recent acquisition of the Norco pipeline system from TransMontaigne Inc., which also originates in the Chicago area, and serves petroleum markets in Illinois, Indiana, and Ohio."
Other stockholders of West Shore are major oil companies, said Buckeye, adding that it expects the West Shore investment to be immediately accretive to distributable cash flow.