Buckeye Partners Closes $850 Million Acquisition Of Terminals Network From Hess

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Purchased 20 liquid petroleum products terminals along the U.S. East Coast.

Houston-based Buckeye Partners LP (NYSE: BPL) announced Dec. 11 that it has completed its purchase of 20 liquid petroleum products terminals with total storage capacity of 39 million barrels for $850 million from Hess Corp. (NYSE: HES).

The 19 domestic terminals are located primarily in major metropolitan locations along the U.S. East Coast and have 29 million barrels of refined petroleum products storage capacity, including 15 million barrels of capacity strategically located in New York Harbor. The terminal on St. Lucia in the Caribbean has 10 million barrels of crude oil and refined petroleum products storage capacity and has deep-water access.

This acquisition increases Buckeye's total liquid petroleum storage capacity by 53% to over 110 million barrels. Hess' Retail Marketing Business will be a key customer at these facilities under a multi-year storage and throughput commitment.

"We are excited to incorporate these strategic marine terminals into Buckeye's growing portfolio of assets," Clark C. Smith, president and CEO, said in the release. "This acquisition strengthens Buckeye's presence in major markets along the East Coast and further solidifies our position in the Caribbean."