Buckeye completes BP asset purchase
Jun 20, 2011 3:38 PM
Buckeye Partners LP has completed the purchase of 33 refined petroleum products terminals and 650 miles of refined petroleum products pipeline from BP North America Inc and its affiliates for $165 million.
The terminal and pipeline assets are in the Midwestern, Southeastern, and Western United States, further extending Buckeye’s operations into new geographic markets. This acquisition includes more than 10 million barrels of storage capacity, increasing Buckeye’s total liquid petroleum storage capacity by approximately 19% to more than 63 million barrels. BP will continue to be a key customer at these facilities under multi-year throughput commitments.
Forrest E Wylie, Buckeye’s chairman and chief executive officer, said, “This acquisition, which is expected to be immediately accretive to our distributable cash flow per unit, is the latest example of our commitment to creating long-term unitholder value through strategic acquisitions that leverage our core strengths as an organization. Since we commenced our best-practices initiative in July 2009, our improved commercial focus has allowed us to drive incremental volumes through our legacy assets, and we are committed to applying these best practices to further enhance the commercial utilization of our newly acquired facilities.”
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