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Buckeye Partners, L.P. has announced that it has signed a definitive agreement with BP Products North America Inc. and its affiliates to acquire 33 refined petroleum products terminals with total storage capacity exceeding 10 million barrels and approximately 1,000 miles of refined petroleum products pipelines, including BP’s approximately 50 percent interest in Inland Corporation, for a total transaction purchase price of $225 million.

The terminal and pipeline assets are located in the Midwestern, Southeastern, and Western United States.

Buckeye’s proposed acquisition of BP’s interest in Inland, which represents $60 million of the total transaction purchase price, is subject to Inland’s other shareholders’ existing rights of first refusal.c Buckeye expects the acquisition to close in the second quarter of 2011, subject to regulatory approvals, other customary closing conditions.

“This transaction is a key step in our continued expansion and geographic diversification efforts and further facilitates our participation in several key growth markets outside our current system footprint,” said Forrest E. Wylie, Buckeye’s Chairman and CEO.

“This acquisition provides stable tariff and fee-based revenue streams that are supported by multi-year throughput commitments by BP. We expect the acquisition to be immediately accretive to our distributable cash flow. In addition, we have identified several opportunities for further commercial development of these assets and anticipate a smooth integration and rapid realization of operating synergies with our existing assets,” added Wylie.

Buckeye Partners, L.P. 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 2,600 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, Bahamas Oil Refining Company (BORCO), is a 21.6 million barrel storage terminal for crude oil, fuel oil and multiple petroleum products located just 80 miles east of the coast of Florida. In addition to storage, BORCO offers blending, trans-shipment and bunkering services. It is the largest storage terminal in the Caribbean.