Buckeye not acquiring BP’s 50% interest in Inland Corporation

Buckeye Partners LP reported that its previously announced acquisition of refined petroleum products terminals and pipelines from BP Products North America Inc and its affiliates will not include the purchase of BP’s 50% interest in Inland Corporation for $60 million.

The other shareholders of Inland exercised their rights of first refusal to purchase all of the Inland shares, so none of the Inland shares were available for Buckeye to purchase. Inland owns approximately 350 miles of refined products pipeline running throughout Ohio.

Buckeye will proceed with the remainder of its purchase from BP of 33 refined petroleum products terminals with total storage capacity exceeding 10 million barrels and about 650 miles of refined petroleum products pipelines, for a total transaction purchase price of $165 million. Buckeye expects the acquisition to close in second quarter 2011, subject to regulatory approvals and other customary closing conditions.

The company also recently completed the previously announced sale of its 20% non-operating interest in West Texas LPG Pipeline Limited Partnership (WTLPG) to Atlas Pipeline Partners LP for total cash consideration of $85 million. WTLPG owns a 2,295-mile common-carrier pipeline system that transports NGLs from locations in New Mexico and Texas to Mont Belvieu TX for fractionation.