Buckeye Partners LP has signed an agreement with ConocoPhillips to purchase three refined-product storage and distribution terminals and two refined-product pipelines and associated storage tanks in the Chicago IL and St Louis MO areas.
“These assets will give Buckeye greater access to important markets and refinery operations in the Midwest,” said Forrest E Wylie, chairman and chief executive officer of Buckeye’s general partner. “The combined footprint increases the commercial value to our customers by offering enhanced distribution connectivity and flexible storage capabilities. In addition, this transaction is supported by stable tariff and fee-based revenues and presents incremental opportunities to expand our product marketing activities. We anticipate a smooth integration and rapid realization of operating synergies. The resulting improvement in asset utilization and identified organic growth projects are expected to increase distributable income to our partnership unit holders.”
Buckeye Partners is a publicly traded partnership that owns and operates one of the largest independent refined-petroleum products pipeline systems in the United States in terms of volumes delivered, with about 5,400 miles of pipeline. It also owns 64 refined-petroleum products terminals, operates and maintains approximately 2,400 miles of pipeline under agreements with major oil and chemical companies, owns a major natural gas storage facility in Northern California, and markets refined-petroleum products in certain of the geographic areas served by its pipeline and terminal operations.