SOURCE: Buckeye Partners, L.P.

Buckeye Partners, L.P.

November 01, 2011 08:59 ET

Buckeye Partners, L.P. Announces Agreement to Acquire Propane Storage Caverns

HOUSTON, TX--(Marketwire - Nov 1, 2011) - Buckeye Partners, L.P. ("Buckeye") (NYSE: BPL) announced today it has completed the purchase of two propane storage caverns in Huntington, Indiana and Tuscola, Illinois from BP North America Inc. and its affiliates, ("BP"). The Tuscola location has approximately 818,000 barrels of shell storage capacity and the Huntington location has approximately 93,600 barrels of shell storage capacity, both of which are mined underground caverns. BP will continue to be a key customer under long-term storage contracts.

"With these assets we enter the business of wholesale storage and throughput of liquefied petroleum gas, a complementary extension of our existing refined products businesses," said Clark Smith, Buckeye's President and Chief Operating Officer. "This acquisition is another example of our success in transitioning assets from major oil companies with plans to increase marketing efforts around the assets to drive utilization."

Buckeye Partners, L.P. (NYSE: BPL) is a publicly traded partnership that owns and operates one of the largest independent liquid petroleum products pipeline systems in the United States in terms of volumes delivered, with over 6,000 miles of pipeline. Buckeye also owns more than 100 liquid petroleum products terminals with aggregate storage capacity of approximately 64 million barrels, operates approximately 3,400 miles of pipeline under agreements with major oil and chemical companies, owns a high-performance natural gas storage facility in Northern California, and markets liquid petroleum products in certain regions served by its pipeline and terminal operations. Buckeye's flagship marine terminal in the Bahamas, BORCO, is one of the largest oil and petroleum products storage facilities in the world, serving the international markets as a premier global logistics hub. Buckeye is celebrating its 125th anniversary as a midstream energy company in 2011. More information concerning Buckeye can be found at www.buckeye.com.

This press release includes forward-looking statements that we believe to be reasonable as of today's date. Such statements are identified by use of the words "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "should," and similar expressions. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and that may be beyond our control. Among them are (1) changes in federal, state, local, and foreign laws or regulations to which we are subject, including those that permit the treatment of us as a partnership for federal income tax purposes, (2) terrorism, adverse weather conditions, including hurricanes, environmental releases, and natural disasters, (3) changes in the marketplace for our products or services, such as increased competition, better energy efficiency, or general reductions in demand, (4) adverse regional, national, or international economic conditions, adverse capital market conditions, and adverse political developments, (5) shutdowns or interruptions at the source points for the products we transport, store, or sell, (6) unanticipated capital expenditures in connection with the construction, repair, or replacement of our assets, (7) volatility in the price of refined petroleum products and the value of natural gas storage services, (8) nonpayment or nonperformance by our customers, and (9) our ability to integrate acquired assets with our existing assets and to realize anticipated cost savings and other efficiencies. You should read our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K/A for the year ended December 31, 2010 and our most recently filed Quarterly Reports on Form 10-Q, for a more extensive list of factors that could affect results. We undertake no obligation to revise our forward-looking statements to reflect events or circumstances occurring after today's date.