UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K

                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934


        Date of Report (Date of earliest event reported): January 3, 2001



                         KANEB PIPE LINE PARTNERS, L.P.
               (Exact name of registrant as specified in charter)


          Delaware                   001-5083                    75-2287571
 (State of Incorporation)     (Commission File No.)           (I.R.S. Employer
                                                             Identification No.)



2435 North Central Expressway
Richardson, Texas                                                        75080
(Address of Principal Executive Offices)                              (Zip Code)


       Registrant's telephone number, including area code: (972) 699-4000





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Item 2.   Acquisition or Disposition of Assets.

         On January 3, 2001, the Registrant  completed the  acquisition of Shore
Terminals LLC. Shore Terminals owns seven terminals,  four in California  (three
in the San  Francisco  Bay area and one in Los  Angeles) and one each in Tacoma,
Washington,  Portland, Oregon and Reno, Nevada, with a total tankage capacity of
7.8 million barrels.  All of the terminals  handle petroleum  products and, with
the exception of the Nevada terminal, have deep water access. The purchase price
was   approximately   $107,000,000  in  cash  and  1,975,000  units  of  limited
partnership  interest of the Registrant.  The  acquisition,  which will become a
part  of  the  ST  Services  terminaling  operations  of  the  Registrant,  will
significantly increase ST Services' presence on the West Coast.

         Financing for the cash portion of the purchase price was supplied under
a new  $275,000,000  unsecured  revolving  credit  with a bank  group  headed by
SunTrust  Bank.  Prior to  closing  the  Shore  transaction,  proceeds  from the
facility were used to repay all of the Registrant's  existing domestic bank debt
and private placement notes,  resulting in the release of all security interests
in the Registrant's property.


Item 7.   Financial Statements and Exhibits.

         (c)      Exhibits.

          10.1 Securities  Purchase  Agreement  Among Shore Terminals LLC, Kaneb
               Pipe Line Partners,  L.P. and the Sellers Named Therein, dated as
               of September 22, 2000.

          10.2 Amendment No. 1 To  Securities  Purchase  Agreement,  dated as of
               November 28, 2000.

          10.3 Registration Rights Agreement, dated as of January 3, 2001.




                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Dated:  January _____, 2001         KANEB PIPE LINE PARTNERS, L.P.

                                    By: KANEB PIPE LINE COMPANY, General Partner

                                    By:  Ronald D. Scoggins, Sr Vice President

<PAGE>




                                INDEX TO EXHIBITS


Number                                 Exhibit


10.1           Securities  Purchase  Agreement  Among Shore Terminals LLC, Kaneb
               Pipe Line Partners,  L.P. and The Sellers  Named  Therein,  dated
               as of September 22, 2000.

10.2           Amendment  No. 1  To  Securities Purchase  Agreement, dated as of
               November 28, 2000.

10.3           Registration Rights Agreement, dated as of January 3, 2001.