SOURCE: Buckeye Partners, L.P.

Buckeye Partners, L.P.

May 17, 2011 18:40 ET

Buckeye Partners, L.P. Announces It Will Not Acquire BP's Interest in Inland Corporation and It Has Completed the Sale of Its 20% Interest in West Texas LPG Pipeline

HOUSTON, TX--(Marketwire - May 17, 2011) - Buckeye Partners, L.P. ("Buckeye") (NYSE: BPL) reported today that its previously announced acquisition of refined petroleum products terminals and pipelines from BP Products North America Inc. and its affiliates ("BP") will not include the purchase of BP's 50% interest in Inland Corporation ("Inland") for $60 million. The other shareholders of Inland exercised their rights of first refusal to purchase all of the Inland shares, such that none of the Inland shares were available for Buckeye to purchase. Inland owns approximately 350 miles of refined products pipeline running throughout Ohio.

Buckeye will proceed with the remainder of its announced purchase from BP of 33 refined petroleum products terminals with total storage capacity exceeding 10 million barrels and approximately 650 miles of refined petroleum products pipelines, for a total transaction purchase price of $165 million. Buckeye expects the acquisition to close in the second quarter of 2011, subject to regulatory approvals and other customary closing conditions.

Buckeye also recently completed the previously announced sale of its 20% non-operating interest in West Texas LPG Pipeline Limited Partnership ("WTLPG") to Atlas Pipeline Partners, L.P. for total cash consideration of $85 million. WTLPG owns a 2,295-mile common-carrier pipeline system that transports NGLs from locations in New Mexico and Texas to Mont Belvieu, Texas for fractionation.

Buckeye Partners, L.P. (NYSE: BPL) 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 approximately 5,400 miles of pipeline. Buckeye also owns 69 liquid petroleum products terminals with aggregate storage capacity of approximately 53 million barrels, operates approximately 2,700 miles of pipeline under agreements with major oil and chemical companies, owns a high-performance natural gas storage facility in Northern California, and markets refined 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 Report 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.