US-based Blueknight Energy Partners (BKEP) has announced that it will establish a joint venture (JV) with Silverado Pipeline to co-develop and reactivate a 200-mile crude oil pipeline between Longview and Houston in Texas, US.
The Silver Eagle pipeline project is expected to be operational in one year’s time.
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Both the companies have agreed to assess and develop transportation from the area.
The JV will activate about 200 miles of existing 10in and 12in pipeline owned by Silverado, and will add necessary crude oil storage as well as provide connectivity to the Houston market.
BKEP CEO, Mark Hurley, said Longview has been turning into a very active crude oil hub, however it has limited connectivity and capacity to reach the Houston market.
"With existing production as well as the significant development projected in the East Texas area, this pipeline will provide a more efficient means of transporting crude oil to the Gulf Coast," Hurley added.
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By GlobalDataSilverado Pipeline managing member, Royston Lightfoot, said the new pipeline will provide an alternative and cost effective option for producers to transport crude oil to the premium markets in the Houston Ship Channel.
BKEP has midstream energy assets of about 7.8 million barrels of crude oil storage in Oklahoma and Texas.
The company has 6.6 million barrels of crude oil storage at the Cushing Oklahoma Interchange, while 264 miles of crude oil pipeline in Oklahoma and Texas.
In addition, BKEP has about 280 crude oil transportation and oilfield service vehicles in Kansas, Colorado, New Mexico, Oklahoma and Texas, and about 7.2 million barrels of combined asphalt product and residual fuel oil storage at 44 terminals in 22 states.
Image: Blueknight Energy Partners, Silverado Pipeline will co-develop a 200-mile crude oil pipeline in Texas, US. Photo: Courtesy of Jarvin.
