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

                        KANEB CLOSES PIPELINE ACQUISITION

DALLAS,  TEXAS  (November 1, 2002) - Kaneb  announced  today that its  operating
subsidiary,  Kaneb Pipe Line Operating Partnership,  L.P. acquired the anhydrous
ammonia pipeline system from Koch Pipeline Company,  L.P. for $140 million.  The
acquisition  was financed with bank debt. 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  approximately  2,000 mile anhydrous  ammonia pipeline system runs from
the  Louisiana  Gulf  Coast  to the  upper  Midwest  states.  It is the  largest
fertilizer pipeline in the country.  The system has connections with three third
party owned  deep-water  import  terminals,  eleven third party  production  and
fertilizer  upgrade  facilities and twenty-three  third party delivery terminals
and has an interconnect  in the Midwest with another  fertilizer  pipeline.  The
pipeline system has a current  delivery  capacity of  approximately  2.2 million
tons of product  annually  and  includes  a 1,500 ton  underground  storage  and
terminal facility in Missouri.


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 78 facilities in 26 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.  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. ###