Buckeye Partners has made an agreement with BP Products North America to buy some of BP’s US fuel storage and pipeline assets for a total cash value of $225m.
Under the terms of agreement, BP will sell 33 refined product terminals and 992 miles of pipelines across 13 states, as well as a 50% share in Inland Corporation, a pipeline joint venture in Ohio.
Subject to regulatory approvals and pre-emption rights of co-owners, the transaction could be concluded in the second quarter of 2011.
The divestment was initially announced in October 2009 to simplify BP’s downstream portfolio, increasing efficiency and decreasing capital employed while ensuring BP’s marketing presence in the US.
