Buckeye acquiring five pipelines, 25 terminals
Aug 1, 2004 12:00 PM
Buckeye Pipe Line Co LLC, the general partner of Buckeye Partners LP, has entered into definitive agreements to acquire five major refined petroleum products pipelines and 25 petroleum products terminals in the midwestern United States from affiliates of Shell Oil Products US for $530 million in cash.
These pipeline systems and terminals will expand the partnership's footprint in the Midwest, and include:
North Line System, a 309-mile pipeline originating at the ConocoPhillips Wood River IL refinery, which delivers refined products to greater Chicago and other areas in Illinois.
East Line System, a 355-mile pipeline also originating at the ConocoPhillips Wood River refinery that delivers refined products across Illinois and Indiana and connects with Buckeye's existing pipeline in Lima OH.
Two Rivers Pipeline, a 191-mile pipeline that receives product from Explorer Pipe Line at a Shell tank farm in Hartford IL and terminates at a 1.3-million-barrel terminal on the Ohio River in Mt Vernon IN. The Mt Vernon terminal is also among the assets to be acquired from Shell.
St Louis 6-Inch Pipeline and the ATF Pipeline, which originate at the ConocoPhillips Wood River Refinery and terminate at, respectively, a terminal in the greater St Louis MO area and at the Lambert-St Louis Airport.
Assets to be purchased also include eight refined petroleum product distribution terminals along the five pipelines being acquired, as well as 14 active and three inactive distribution terminals on other major Midwest refined products pipeline systems (such as the Wolverine and West Shore pipelines) or along the Ohio River. The 25 terminals being purchased have total storage capacity of about 10.5 million barrels.
The pipelines will be integrated into Buckeye's existing Midwest field operations, and the terminals will be integrated into the existing terminal operations conducted by Buckeye Terminals LLC.
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