Exhibit 99.1


                             For immediate release

For more information, contact:                         Investor Relations
                                                       (972) 699-4041
                                                       Email: investor@kaneb.com

                   KANEB To Acquire Pipeline for $100 million

DALLAS,  TX  (November  22,  2002) - KANEB today  reported  that Kaneb Pipe Line
Operating Partnership, L.P., a subsidiary of Kaneb Pipe Line Partners, L.P., had
signed a definitive  agreement,  subject to  customary  closing  conditions,  to
acquire an approximately  400 mile products pipeline and four terminals in North
Dakota and Minnesota from Tesoro Refining and Marketing Company, a subsidiary of
Tesoro  Petroleum  Corporation.  Subject  to  receipt  of  necessary  regulatory
approvals and completion of closing  conditions,  the parties anticipate closing
the transaction before the end of December,  2002. The KANEB Companies are Kaneb
Services LLC (NYSE:  KSL) and Kaneb Pipe Line Partners,  L.P.  (NYSE:  KPP, "the
Partnership").  Kaneb  Services LLC's wholly owned  subsidiary,  Kaneb Pipe Line
Company LLC, is the Partnership's  General Partner. The Partnership will finance
the acquisition initially with a bank loan due in December 2003.

John R. Barnes,  Chairman and Chief  Executive  Officer of Kaneb  Services  LLC,
said,  "This is an excellent  opportunity to acquire a quality asset that allows
us to expand our service  capabilities for our existing  customers and for those
customers on the Tesoro pipeline."

The Tesoro  pipeline  system  originates  at the  Mandan,  North  Dakota  Tesoro
refinery  and  terminates  in the  Minneapolis  area.  It  serves  its own  four
terminals  as well  as  certain  non-owned  destinations  in  North  Dakota  and
Minnesota through pipeline connections.

"We are delighted to have the opportunity to make this acquisition," said Edward
D. Doherty,  Chairman and CEO of Kaneb Pipe Line Company LLC, the  Partnership's
General  Partner.  "The  proximity  of the Tesoro  system to our  existing  east
pipeline  provides for easy  connection of the two systems which should  produce
significant synergies for both lines."

ABOUT KANEB

KANEB is a single business  represented by two separate publicly traded entities
on the New York Stock Exchange. KANEB's business is focused on mid-stream energy
assets -- refined  petroleum  product  pipelines,  and  petroleum  and specialty
liquids  storage and  terminaling  facilities.  KANEB is a major  transporter of
refined petroleum  products in the Midwest and is the third largest  independent
liquids  terminaling  company  in  the  world.   Worldwide   operations  include
facilities  in 28 states,  the District of  Columbia,  Canada,  the  Netherlands
Antilles,  Australia,  New Zealand and the United  Kingdom.  Its publicly traded
entities are Kaneb Services LLC (NYSE: KSL) and Kaneb Pipe Line Partners,  L.P.,
(NYSE: KPP, "the Partnership").

Kaneb  Services LLC is a unique  limited  liability  company,  the only publicly
traded,  cash  distributing  entity taxed as a partnership that owns the general
partner  interest of another publicly traded master limited  partnership.  KSL's
assets are the KPP general  partner  interest  and 5.1  million KPP  partnership
units.  Through a wholly  owned  subsidiary,  Kaneb Pipe Line  Company  LLC, KSL
manages and  operates  the KPP  pipeline  and  terminaling  assets.  Another KSL
subsidiary provides wholesale fuel marketing services.

Kaneb Pipe Line Partners, L.P., a master limited partnership, was formed in 1989
to own a 2,075 mile common carrier  pipeline  system from Kansas to North Dakota
that has been  managed  by Kaneb  Pipe Line  Company  LLC since  1953.  Pipeline
acquisitions  in 1995 and 1998 added 725 miles of  pipeline in  Colorado,  Iowa,
South  Dakota  and  Wyoming.  In 2002,  the  Partnership  acquired  the  largest
fertilizer  pipeline in the country, a 2,000-mile pipeline system that runs from
the Louisiana Gulf Coast to the upper Midwest states.  The  Partnership  entered
the liquids terminaling  business with a large acquisition in 1993, and has more
than tripled the size of this  operation  through  subsequent  acquisitions.  In
2001, the Partnership  completed a $165 million acquisition of seven West Coast,
U.S. terminals. In 2002, the Partnership completed a $300 million acquisition of
two world-class  terminaling  facilities  located in Point Tupper,  Nova Scotia,
Canada and on the island of St.  Eustatius in the  Netherlands  Antilles and the
acquisition of eight bulk liquid storage terminals in Australia and New Zealand.

Certain of the statements in this press release are not purely  historical,  and
as such are  "forward-looking  statements"  within the  meaning  of the  Private
Securities  Litigation  Reform Act of 1995. These include  statements  regarding
management's  intentions,  plans,  beliefs,  expectations  or projections of the
future.  Forward-looking  statements involve risks and uncertainties,  including
without limitation,  the various risks inherent in the company's  business,  and
other  risks and  uncertainties  detailed  from  time to time in the  companies'
periodic reports filed with the Securities and Exchange Commission.  One or more
of these factors have affected,  and could in the future  affect,  the company's
business and financial results in future periods, and could cause actual results
to differ materially from plans and projections.  There can be no assurance that
the forward-looking  statements made in this document will prove to be accurate,
and  issuance  of such  forward-looking  statements  should not be regarded as a
representation  by the company,  or any other person,  that the  objectives  and
plans of the company will be achieved.  All  forward-looking  statements made in
this press release are based on information  presently  available to management,
and the company assumes no obligation to update any forward-looking statements.