Exhibit 99.1


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

                       KANEB Reports Third Quarter Results

DALLAS,  TX (October 21, 2002)  -KANEB  today  reported  results for the quarter
ended September 30, 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.

John R. Barnes,  Chairman and Chief  Executive  Officer of Kaneb  Services  LLC,
said,  "The third  quarter  continued  a very busy year for KANEB.  We  recently
announced the  Partnership's  acquisition of eight bulk liquid storage terminals
in Australia and New Zealand and a definitive  agreement for the  Partnership to
acquire the largest  fertilizer  pipeline  system in the United States.  Earlier
this  year,  we made  the  largest  terminal  acquisition  in the  Partnership's
history.  While a couple of our terminals had a difficult  quarter,  our overall
operations are performing well."

On September  18,  2002,  KANEB  announced  that the  Partnership  had closed an
acquisition of eight  port-side  bulk liquid storage  terminals in Australia and
New Zealand for approximately U.S. $44 million, subject to adjustment based on a
closing date balance sheet. The acquired  terminals provide storage and handling
services to the chemicals,  plastics and food ingredient industries.  KANEB also
announced that the Partnership  had signed a definitive  agreement to acquire an
anhydrous  ammonia pipeline that runs from the Louisiana Gulf Coast to the upper
Midwest states from Koch Pipeline  Company,  L.P. The  approximately  2,000 mile
pipeline  has  connections  to  multiple  third party  owned  deep-water  import
terminals,  production  and  fertilizer  upgrade  facilities  and other delivery
terminals and an interconnect in the Midwest with another fertilizer pipeline.

"Our ST Services  terminaling group had an exceptional  quarter while the Statia
Terminals' operation continued to underperform our expectations," said Edward D.
Doherty,  Chairman and CEO of Kaneb Pipe Line  Company  LLC,  the  Partnership's
General Partner.  "The combination of U.S. economic  conditions and reduced fuel
oil and  bunker  business  adversely  affected  Statia's  quarter.  While we are
actively  working to improve  Statia's  situation,  it might be next year before
significant results from such efforts become apparent."

3Q 2002 RESULTS FOR KANEB PIPE LINE PARTNERS, L.P.

Net income for the quarter was $19.3 million,  compared to $18.3 million for the
third quarter of 2001. For the nine months ended  September 30, 2002, net income
before  extraordinary  item  and  gain  on  settlement  of  treasury  lock  (see
Supplemental  Information  in the attached  table)  increased to $55.6  million,
compared with $49.4  million for the prior year period.  Reported net income for
the nine  months  ended  September  30,  2002 was $53.5  million,  up from $47.5
million for the same prior year period.  Operating  income for the third quarter
increased  to $27.9  million,  up from  $22.1  million  in the same  prior  year
quarter,  and for the nine months ended  September  30, 2002 was $78.9  million,
compared to $62.3 for the same period last year.

3Q 2002 RESULTS FOR KANEB SERVICES LLC

Kaneb  Services  LLC,  the General  Partner of Kaneb Pipe Line  Partners,  L.P.,
reported  net income for the quarter of $6.7  million,  compared to $6.0 million
for the third quarter of 2001. For the nine months ended September 30, 2002, net
income before  extraordinary  item, gain on settlement of treasury lock and gain
on issuance of units by KPP (see Supplemental Information in the attached table)
increased  to $17.6  million,  compared  with $15.1  million  for the prior year
period.  Reported  net income for the nine months ended  September  30, 2002 was
$34.4 million,  up from $25.1 million for the same prior year period.  Operating
income for the quarter  was $28.5  million,  compared  to $22.7  million for the
third quarter of 2001 and for the nine months ended September 30, 2002 was $80.0
million, up from $62.2 million in same prior year period.

KSL was  formed as a limited  liability  company  in 2001  from  certain  assets
previously held by Kaneb Services,  Inc. (now Xanser Corporation).  These assets
include the KPP general partner interest, including incentive distributions,  as
well as 5.1 million  Partnership units, a wholesale  petroleum product marketing
company,  and a wholly owned  subsidiary  that manages and operates the pipeline
and terminaling assets of KPP.

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.

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.


<PAGE>
                         KANEB PIPE LINE PARTNERS, L.P.
                        CONSOLIDATED STATEMENTS OF INCOME
                     (In thousands, except per unit amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                      Three Months                           Nine Months
                                                                   Ended September 30,                    Ended September 30,
                                                              -----------------------------          -----------------------------
                                                                 2002               2001                2002                2001
                                                              ---------          ---------           ---------           ---------
<S>                                                           <C>                <C>                 <C>                 <C>
Revenues:
  Services                                                    $  75,184          $  53,403           $ 207,946           $ 154,424
  Products                                                       28,120                -                63,702                 -
                                                              ---------          ---------           ---------           ---------
     Total revenues                                             103,304             53,403             271,648             154,424
                                                              ---------          ---------           ---------           ---------
Costs and expenses:
  Cost of products sold                                          26,501                -                59,433                 -
  Operating costs                                                34,082             23,396              91,845              67,333
  Depreciation and amortization                                  10,302              5,624              27,408              17,326
  General and administrative                                      4,549              2,307              14,111               7,483
                                                              ---------          ---------           ---------           ---------
     Total costs and expenses                                    75,434             31,327             192,797              92,142
                                                              ---------          ---------           ---------           ---------
Operating income                                                 27,870             22,076              78,851              62,282

Interest and other income                                           233                122                 414               4,218

Interest expense                                                 (7,202)            (3,380)            (20,132)            (12,144)
                                                              ---------          ---------           ---------           ---------
Income before minority interest, income
  taxes and extraordinary item                                   20,901             18,818              59,133              54,356

Minority interest in net income                                    (195)              (185)               (562)               (537)
Income tax provision                                             (1,410)              (295)             (2,981)               (602)
                                                              ---------          ---------           ---------           ---------
Income before extraordinary item                                 19,296             18,338              55,590              53,217
Extraordinary item - loss on debt
  extinguishment, net of minority
  interest and income taxes                                         -                  -                (2,090)             (5,757)
                                                              ---------          ---------           ---------           ---------
Net income                                                       19,296             18,338              53,500              47,460

General partner's interest in net income                         (1,414)              (924)             (4,112)             (1,868)
                                                              ----------         ---------           ---------           ---------
Limited partners' interest in net income                      $  17,882          $  17,414           $  49,388           $  45,592
                                                              =========          =========           =========           =========
Allocation of net income per unit:
  Before extraordinary item                                   $    0.77          $    0.86           $    2.31           $    2.54
  Extraordinary item                                                -                  -                 (0.09)              (0.29)
                                                              ---------          ---------           ---------           ---------
                                                              $    0.77          $    0.86           $    2.22           $    2.25
                                                              =========          =========           =========           =========
Weighted average number of Partnership
  units outstanding                                              23,100             20,285              22,237              20,285
                                                              =========          =========           =========           =========

</TABLE>

<PAGE>
                         KANEB PIPE LINE PARTNERS, L.P.
                            SUPPLEMENTAL INFORMATION
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      Three Months                           Nine Months
                                                                   Ended September 30,                    Ended September 30,
                                                              -----------------------------          -----------------------------
                                                                 2002               2001                2002                2001
                                                              ---------          ---------           ---------           ---------
<S>                                                           <C>                <C>                 <C>                 <C>
Income before extraordinary item  (in 000s)                   $  19,296          $  18,338           $  55,590           $  53,217
Gain on settlement of treasury lock  (in 000s)                      -                  -                   -                (3,782)
                                                              ---------          ---------           ---------           ---------
Income before extraordinary item and settlement of
   treasury lock  (in 000s)                                   $  19,296          $  18,338           $  55,590           $  49,435
                                                              =========          =========           =========           =========
Income per unit before extraordinary item and
   settlement of treasury lock                                $    0.77          $    0.86           $    2.31           $    2.36
                                                              =========          =========           =========           =========
Revenues (in 000s):
  Pipeline                                                    $  20,998          $  20,195           $  57,946           $  55,155
  Terminaling                                                    54,186             33,208             150,000              99,269
  Product marketing                                              28,120                -                63,702                 -
                                                              ---------          ---------           ---------           ---------
                                                              $ 103,304          $  53,403           $ 271,648           $ 154,424
                                                              =========          =========           =========           =========
Operating income (in 000s):
  Pipeline                                                    $   9,487          $   9,827           $  27,421           $  26,640
  Terminaling                                                    18,478             12,249              50,962              35,642
  Product marketing                                                 (95)               -                   468                 -
                                                              ---------          ---------           ---------           ---------
                                                              $  27,870          $  22,076           $  78,851           $  62,282
                                                              =========          =========           =========           =========
Income before interest, income taxes, depreciation
  and amortization and extraordinary item (in 000s)           $  37,977          $  27,515           $ 105,697           $  79,071
                                                              =========          =========           =========           =========
Depreciation and amortization (in 000s):
  Pipeline                                                    $   1,385          $   1,324           $   4,132           $   3,937
  Terminaling                                                     8,728              4,300              22,813              13,389
  Product marketing                                                 189                -                   463                 -
                                                              ---------          ---------           ---------           ---------
                                                              $  10,302          $   5,624           $  27,408           $  17,326
                                                              =========          =========           =========           =========
Capital expenditures (in 000s):
  Pipeline                                                    $   2,348          $   1,216           $   7,148           $   2,125
  Terminaling                                                     5,353              2,177              14,661               7,464
  Product marketing                                                  10                -                   120                 -
                                                              ---------          ---------           ---------           ---------
                                                              $   7,711          $   3,393           $  21,929           $   9,589
                                                              =========          =========           =========           =========
Pipeline operating statistics - Barrel miles
  shipped (in billions)                                             5.0                5.0                13.7                13.9
                                                              =========          =========           =========           =========
Terminaling operating statistics:
  Average annual barrels of tankage
    utilized (in millions)                                         47.8               30.0                45.3                30.1
                                                              =========          =========           =========           =========
  Average annual revenues per barrel
    of tankage utilized                                       $    4.50          $    4.40           $    4.43           $    4.42
                                                              =========          =========           =========           =========

</TABLE>



<PAGE>
                               KANEB SERVICES LLC
                        CONSOLIDATED STATEMENTS OF INCOME
                    (In thousands, except per share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                      Three Months                           Nine Months
                                                                   Ended September 30,                    Ended September 30,
                                                              -----------------------------          -----------------------------
                                                                 2002               2001                2002                2001
                                                              ---------          ---------           ---------           ---------
<S>                                                           <C>                <C>                 <C>                 <C>
Consolidated revenues:
  Services                                                    $  75,184          $  53,403           $ 207,946           $ 154,424
  Products                                                      108,935             77,260             277,828             264,491
                                                              ---------          ---------           ---------           ---------
    Total consolidated revenues                                 184,119            130,663             485,774             418,915
                                                              ---------          ---------           ---------           ---------
Consolidated costs and expenses:
  Cost of products sold                                         105,059             75,773             268,727             262,296
  Operating costs                                                34,303             23,647              92,555              68,139
  Depreciation and amortization                                  10,313              5,643              27,440              17,382
  General and administrative                                      5,938              2,874              17,034               8,929
                                                              ---------          ---------           ---------           ---------
    Total consolidated costs and expenses                       155,613            107,937             405,756             356,746
                                                              ---------          ---------           ---------           ---------
Consolidated operating income                                    28,506             22,726              80,018              62,169
Consolidated interest and other income                              259                123                 482               4,230
Consolidated interest expense                                    (7,478)            (3,560)            (20,944)            (12,726)
                                                              ---------          ---------           ---------           ---------
Consolidated income before gain on issuance of units
  by KPP, income taxes, interest of outside non-
  controlling partners in KPP's net income and
  extraordinary item                                             21,287             19,289              59,556              53,673
Gain on issuance of units by KPP                                    -                  -                17,332               9,859
Income tax benefit (expense)                                       (673)              (296)             (2,113)                800
Interest of outside non-controlling partners
  in KPP's net income                                           (13,941)           (13,037)            (39,852)            (38,404)
                                                              ---------          ---------           ---------           ---------
Income before extraordinary item                                  6,673              5,956              34,923              25,928
Extraordinary item - loss on extinguishment of debt by
  KPP, net of income taxes and interest of outside
  non-controlling partners in KPP's net income                      -                  -                  (502)               (859)
                                                              ---------          ---------           ---------           ---------
Net income                                                    $   6,673          $   5,956           $  34,421           $  25,069
                                                              =========          =========           =========           =========
Earnings per share:
   Basic:
      Before extraordinary item                               $    0.58          $    0.55           $    3.05           $    2.42
      Extraordinary item                                            -                  -                 (0.04)              (0.08)
                                                              ---------          ---------           ---------           ---------
                                                              $    0.58          $    0.55           $    3.01           $    2.34
                                                              =========          =========           =========           =========
   Diluted:
      Before extraordinary item                               $    0.57          $    0.52           $    2.97           $    2.29
      Extraordinary item                                            -                  -                 (0.04)              (0.08)
                                                              ---------          ---------           ---------           ---------
                                                              $    0.57          $    0.52           $    2.95           $    2.21
                                                              =========          =========           =========           =========

</TABLE>

<PAGE>
                               KANEB SERVICES LLC
                            SUPPLEMENTAL INFORMATION
                    (In thousands, except per share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                      Three Months                           Nine Months
                                                                   Ended September 30,                    Ended September 30,
                                                              -----------------------------          -----------------------------
                                                                 2002               2001                2002                2001
                                                              ---------          ---------           ---------           ---------

<S>                                                           <C>                <C>                 <C>                 <C>
Income before extraordinary item                              $   6,673          $   5,956           $  34,923           $  25,928
Gain on settlement of treasury lock, net of interest of
  outside non-controlling partners in KPP's net income              -                  -                   -                (1,016)
Gain on issuance of units by KPP                                    -                  -               (17,332)             (9,859)
                                                              ---------          ---------           ---------           ---------
Income before extraordinary item, as adjusted                 $   6,673          $   5,956           $  17,591           $  15,053
                                                              =========          =========           =========           =========
Diluted earnings per share before gain on issuance of
  units by KPP, income taxes and extraordinary item           $    0.57          $    0.52           $    1.50           $    1.33
                                                              =========          =========           =========           =========
Weighted average diluted shares outstanding                      11,751             11,350              11,756              11,348
                                                              =========          =========           =========           =========
Consolidated revenues (including KPP):
  Pipeline                                                    $  20,998          $  20,195           $  57,946           $  55,155
  Terminaling                                                    54,186             33,208             150,000              99,269
  Product Marketing                                             108,935             77,260             277,828             264,491
                                                              ---------          ---------           ---------           ---------
                                                              $ 184,119          $ 130,663           $ 485,774           $ 418,915
                                                              =========          =========           =========           =========
Consolidated operating income (including KPP):
  Pipeline                                                    $   9,487          $   9,827           $  27,421           $  26,640
  Terminaling                                                    18,478             12,249              50,962              35,642
  Product Marketing                                                 803              1,013               2,937                 749
  General and administrative expenses                              (262)              (363)*            (1,302)               (862)*
                                                              ---------          ---------           ---------           ---------
                                                              $  28,506          $  22,726           $  80,018           $  62,169
                                                              =========          =========           =========           =========
Cash flow information:
  Distributions received from KPP                             $   5,616                              $  15,996
  Parent Company general and administrative expenses               (262)                                (1,302)
  Parent Company interest expense                                  (195)                                  (533)
                                                              ---------                              ---------
                                                              $   5,159                              $  14,161
                                                              =========                              =========
  Cash distributed to shareholders                            $   4,749                              $  13,602
                                                              =========                              =========

* Does not include incremental general and administrative expenses as a result
of the Company becoming a separate public entity.

</TABLE>