February 5, 2013 [OPIS] - Blueknight Energy Partners LP said late on Monday it has entered into an agreement with Advantage Pipeline LLC to acquire approximately 30% ownership in a 70-mile crude oil pipeline project running from Pecos, Texas, to Crane, Texas.
Blueknight is a midstream energy company providing integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products.
Its general partner, Blueknight Energy Partners GP, LLC, is jointly owned by affiliates of Vitol Holdings BV, one of the world’s largest independent energy traders, and Charlesbank Capital Partners, a private equity firm.
Named the Pecos River Pipeline, the new 16-inch diameter pipeline will enable west Texas producers to deliver crude oil to Gulf Coast markets through a pipeline connection at Crane, Texas. Blueknight will operate the pipeline under a long-term agreement with Advantage.
The new pipeline will offer more shipping options for oil producers in the West Texas area, which is in need of additional infrastructure.
Construction will commence soon and we expect phase I of the project to be operational by the end of May.
The pipeline will be connected to the Longhorn Pipeline and will carry crude to terminals and refineries in the Gulf Coast area.
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Blueknight’s Storage Facilities in TankTerminals.com: Blueknight Cushing
