Buckeye Partners, LP is to acquire a 50 percent equity interest in VTTI BV for US$1.15 billion.
VTTI BV will be jointly owned with Vitol and is one of the largest independent terminal businesses that, through its subsidiaries and partnership interests, owns and operates approximately 54 million barrels of petroleum products storage across 13 terminals on five continents.
The terminals are predominately located in key global energy hubs — including Northwest Europe, the UAE and Singapore. A majority of VTTI’s cash flows are supported by take-or-pay storage agreements with Vitol, the largest crude oil and petroleum products trading company in the world. The Buckeye transaction is expected to close in early January 2017.
“This investment in VTTI provides immediate access to a stable portfolio of international terminal and storage assets, as well as an established platform to participate in further attractive growth opportunities across the globe,” stated Clark C Smith, chairman, president and CEO. “The interest we are acquiring in VTTI fits well into our growth strategy of investing in terminal assets in strategic energy hubs while enhancing the logistical solutions available to our customer base across key energy markets. We expect this investment to generate increasing quarterly distributions supported by stable fee-based cash flows. These cash flows are underpinned by commercial agreements with credit worthy customers, anchored by Vitol.”

2nd November 2016