$6.5B Deal to Sell Buckeye Partners to an Investment Firm

Buckeye Partners, a Houston pipeline operator which had struggled financially, decided to sell itself to an Australian investment firm focused on pipelines, terminals, roads and other infrastructure for $6.5 billion.

"Buckeye's Board recently reviewed strategic options for the business and determined that IFM's proposal to acquire Buckeye is in the best interest of Buckeye," said Buckeye Chairman and Chief Executive Clark Smith.

"This acquisition is aligned with IFM's focus on investing in high quality, essential infrastructure assets that underpin the economies in which they operate," said Julio Garcia, head of North American infrastructure for IFM.

The pipeline operator owns about 6,000 miles of petroleum pipelines, 115 terminals and a large supply of storage tanks focused primarily along the East Coast and Gulf Coast, and IFM is a global firm with a U.S. headquarters in New York that is owned by a group of Australian pension funds for nonprofit firms.


Plans for Building Five 100,000-Gallon LNG Storage Facility by Delmarva Power

Delmarva Power submitted a request to the state utility for permission to build a liquefied natural gas storage facility in northern Delaware.

 The company is proposing to build five 100,000 gallon gas storage tanks, which would improve the reliability of its natural gas supply and distribution operations.

The company said this will eliminate the need to renew several expiring interstate pipeline contracts. Also there is a possibility of adding five more to meet future customer demands.

The facility would be built on property near Red Lion that is already home to a Delmarva Power substation and a Bloom Energy fuel cell generation facility, according to a docket filing last week.

Delmarva customers would save an estimated $124 million over 30 years after the construction and operation of the storage facility, company said.


Plains All American Controls Fire and Resumes Operations of Wichita Falls Crude Storage Tank

Plains All American Pipeline said on Wednesday that the fire on a crude storage tank east of Wichita Falls, Texas was extinguished. Initially, the company did not specify if other operations were affected by the fire but the terminal and connecting pipelines have resumed operations.

Tuesday morning’s fire broke out on a roof seal of a crude oil storage tank at the Wichita Falls Station and was extinguished around midnight, the company said in a statement.

Wichita Falls is a crude injection point in north Texas along Plain’s Basin Pipeline. It runs from the Permian Basin to the oil storage hub at Cushing, Okla.

The pipeline was flowing at a rate of nearly 409,000 barrels per day at the time it was shut after decreasing in power consumption around 7:00 A.M. ET on Tuesday. It has a capacity of 450,000 bpd.