Blueknight Energy plans to build $300m pipeline project in US

Blueknight Energy Partners (BKEP) has unveiled plans to construct a $300m, 160-mile pipeline project to serve Eaglebine crude in the US.

The project will connect the East Texas Eaglebine/Woodbine crude oil resource play to Oiltanking Houston crude oil and product terminal on the Houston Ship Channel.

The pipeline, which will originate in Madison County and run south via Leon, Walker and Houston counties, will have an initial capacity of 100,000bpd with an option to expand up to 200,000 bpd in the future.

The pipeline will serve Eaglebine/Woodbine crude oil producers through two origination stations situated near North Zulch and Madisonville.

A third station near Roans Prairie is also planned to accommodate future production growth in the area.

Construction work on the pipeline is anticipated to be completed by March 2016.

BKEP chief executive officer Mark Hurley said: "The Eaglebine-Woodbine region is emerging as one of the most prolific crude oil plays in the country and the area needs new infrastructure to realise its full potential.

"Our project, which will be known as the Knight Warrior Pipeline, represents a significant investment in a new system to ensure crude oil producers have access to key refining markets.

"Moreover, our ability to increase the capacity of this pipeline in the future is an important feature of the project as we see strong interest from producers to expand their presence and activity in the Eaglebine/Woodbine play."

BKEP owns and operates a portfolio of midstream energy assets featuring around 7.8 million barrels of crude oil storage in Oklahoma and Texas and 6.6 million barrels at the Cushing Oklahoma Interchange.

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Image: The project will connect the East Texas Eaglebine-Woodbine crude oil resource play to Oiltanking Houston crude oil and product terminal. Photo: courtesy of supakitmod/FreeDigitalPhotos.net.