Buckeye expects to complete the disposition of this business and its assets in 2014.

In addition, Buckeye recorded an asset impairment charge of $169.0 million relating to discontinuing the Natural Gas Storage business. This business has been classified as discontinued operations in its consolidated financial statements.

The company’s natural gas storage business consists of Buckeye’s Lodi Gas Storage, which owns a natural gas storage facility located in northern California, industry sources told OPIS.

Buckeye bought that gas storage asset from ArcLight Capital Partners for a total cash consideration of approximately $432 million in 2008.

Lodi Gas Storage (LGS) owns and operates a storage facility located near Lodi, California, and a facility known as Kirby Hills located approximately 45 miles west of the Lodi facility. The combined LGS facilities provide approximately 22 billion cubic feet of working gas capacity and are connected to Pacific Gas and Electric’s intrastate gas pipelines that serve natural gas demand in the San Francisco and Sacramento areas.

A lack of price volatility prior to January 2014 has underpinned that gas storage segment’s lackluster performance, sources said. Gas storage contract is typically locked in six months in advance. It is noted that natural gas price was very volatile in January and so far in February due to a spike in demand and cold weather in the Northeast.

Buckeye reported income from continuing operations for the fourth quarter of 2013 of $87.5 million compared to income from continuing operations for the fourth quarter of 2012 of $32.5 million, which included an asset impairment charge of $60.0 million relating to ceasing operations on a portion of Buckeye’s NORCO pipeline system.

For 2013, Buckeye reported income from continuing operations of $351.6 million compared to income from continuing operations for 2012 of $235.9 million, which included the NORCO asset impairment charge.