Blueknight Energy Partners, L.P. (NASDAQ: BKEP) (NASDAQ: BKEPP) (“BKEP” or the “Partnership”), a midstream energy company providing integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products, announced today it has entered into an agreement with Advantage Pipeline, L.L.C. (“Advantage”) to acquire approximately 30% ownership in a 70 mile crude oil pipeline project running from Pecos, Texas to Crane, Texas. Named the Pecos River Pipeline, the new 16” diameter pipeline will enable west Texas producers to deliver crude oil to Gulf Coast markets through a pipeline connection at Crane, Texas. BKEP will operate the pipeline under a long term agreement with Advantage.
Mark Hurley, BKEP Chief Executive Officer, stated, “We are pleased to work with Advantage Pipeline to open new markets for crude oil producers in this part of the growing Permian Basin. This project provides our company a well-positioned platform to expand and extend our presence throughout this active region where demand is strong for safe and reliable ways to efficiently move crude to market.”
Mike Shelton, Advantage President, stated further, “We look forward to partnering with Blueknight Energy Partners and additional investors to build this new pipeline, which will deliver significant value to producers in this area 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.”
Source: Business Wire
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