Magellan Midstream Partners will acquire 7.8 million barrels of crude oil storage and over 100 miles of active petroleum pipelines from BP Pipelines (North America) for $289m.
The storage is in Oklahoma, US, and comes as part of a multi-year utilisation deal with BP.
Under the contract, the firm will acquire about 40 miles of crude oil pipelines between Houston and Texas City, Texas, varying in size from 24 to 26in in diameter.
Magellan will also acquire two 35-mile common carrier pipelines to transport refined petroleum products from the Texas City refining region to Houston, including connections to third-party pipelines for delivery to other end-use markets.
Magellan CEO Don Wellendorf said the acquisition will expand its crude oil logistics infrastructure and energy footprint in the Cushing, Oklahoma and Houston markets.
