BP to Sell Some U.S. Fuel Storage and Pipeline Assets to Buckeye
BP Products North America today announced that it has agreed to sell a package of 33 refined products terminals and 992 miles of pipelines across 13 states to Buckeye Partners L.P. Buckeye has also agreed to buy BP’s 50 per cent share in Inland Corporation, the pipeline joint venture in Ohio.
Under the terms of the agreement Buckeye has agreed to pay BP $225 million in cash, subject to closing adjustments. Subject to regulatory approvals and pre-emption rights of co-owners, the transaction is expected to complete during the second quarter of 2011.
The planned divestment was originally announced in October 2009 as a move to simplify BP’s downstream portfolio, increasing efficiency and decreasing capital employed while maintaining BP’s marketing footprint in the US. BP expects to continue to market its fuel through the terminals and will continue with the customer relationships currently in place.
Inland Corporation, currently operated by BP Pipelines (North America) Inc., owns one of the largest product pipeline systems in the state of Ohio and consists of approximately 350 miles of active pipeline and 259 miles of out of service pipeline. The pipeline system connects three refineries in the Ohio area, BP/Husky in Toledo, Husky in Lima, and SUN in Toledo to 15 terminals.
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